In a free enterprise system, what is a risk-taking individual who looks for profits called?

• A. Investor
• B. Entrepreneur
• C. Manager
• D. Employee

Answer: (B)

In a free enterprise system, an entrepreneur is defined as a risk-taking individual who seeks to create new businesses or innovate within existing markets with the primary goal of generating profit. Entrepreneurs are pivotal to the economy because they drive creativity, introduce new products and services, and ultimately foster competition. This ability to identify opportunities, assume risks associated with starting and managing a business, and innovate to meet consumer demands distinguishes entrepreneurs from other roles within the economy.

Investors typically provide the capital that entrepreneurs need to launch and grow their businesses, but they may not be involved in the day-to-day risk-taking and management that entrepreneurs undertake. Managers oversee operational activities and guide teams to achieve business objectives, but they usually operate within existing organizational frameworks rather than creating new ventures. Employees are those who work for businesses, focusing on completing tasks and responsibilities as directed, without taking on the inherent risks of business ownership. Each of these roles is essential to a functioning economy, but the entrepreneur is the key figure specifically associated with risk-taking for profit in a free enterprise system.