Entrepreneur is associated more with

Step 1: Analyze the question The question asks which function is most closely associated with an entrepreneur, one of the four factors of production (land, labour, capital, entrepreneur).

Step 2: Explain the concept An entrepreneur is the person who organizes and combines the other factors of production (land, labour and capital) to produce goods and services. The entrepreneur takes the initiative to start the business and is the one who bears the risk and uncertainty of the venture. The reward for this role is profit, but profit is the payment the entrepreneur receives, not the defining function.

Step 3: Evaluate the options

• A. Capital management: Managing capital is a task for managers or financial officers. It is not the entrepreneur's distinguishing function.
• B. Production of beverage: This is only one possible industry, so it is far too narrow.
• C. Profit making: Profit is the reward for entrepreneurship, not the unique function. Every business wants profit, and profit exists because the entrepreneur takes risks.
• D. Profit sharing: This is a way of distributing earnings to workers or owners. It is not the entrepreneur's role.
• E. Risk bearing: This is the classic distinguishing function of the entrepreneur. If the business fails, the entrepreneur bears the loss.

Step 4: Answer The entrepreneur is associated more with risk bearing, which is option E.

Tip: Remember the rewards of the factors of production:

• Land → Rent
• Labour → Wages
• Capital → Interest
• Entrepreneur → Profit (the reward for risk bearing)

If an exam asks for the function of the entrepreneur, think "organizes and bears risk." If it asks for the reward, think "profit."