Which term describes a person who starts a new venture and takes on the risks and rewards?

Which term describes a person who starts a new venture and takes on the risks and rewards?

• A. Enterprise
• B. Sole Trader
• C. Entrepreneur
• D. Public Sector

Answer: (C)

The person who starts a new venture and takes on the risks and rewards is an entrepreneur. An entrepreneur is someone who identifies an opportunity, mobilizes resources to create a business, and accepts the financial and personal risk in pursuit of potential rewards like profit and growth. This term focuses on the role and mindset of creating and growing a new business. A sole trader describes a business ownership type—one person running the business—rather than the act of starting a venture or taking on risk. Enterprise refers to initiative or the ability to start and develop ideas, but it doesn’t name the person specifically. Public sector is unrelated, as it refers to government-owned activities.

The person who starts a new venture and takes on the risks and rewards is an entrepreneur. An entrepreneur is someone who identifies an opportunity, mobilizes resources to create a business, and accepts the financial and personal risk in pursuit of potential rewards like profit and growth. This term focuses on the role and mindset of creating and growing a new business.

A sole trader describes a business ownership type—one person running the business—rather than the act of starting a venture or taking on risk. Enterprise refers to initiative or the ability to start and develop ideas, but it doesn’t name the person specifically. Public sector is unrelated, as it refers to government-owned activities.