Question

checkpoint 1.1
economics - 81 - mi / module 1 / lesson 5

1. select the following statement that is accurate regarding entrepreneurs.

○ entrepreneurs must always make decisions for the company they started.
○ entrepreneurs only need a willingness to take a risk to start a business.
○ if an entrepreneur wants to reduce their risks, they can pass the risks on to a ceo.
○ an entrepreneur can fire and replace the managers of their company.

Explanation:

• Option A is incorrect: Entrepreneurs may delegate decisions to leadership teams as the company grows, so they do not always make all company decisions.
• Option B is incorrect: While risk tolerance is key, entrepreneurs also need planning, capital, market knowledge, and other resources to start a business.
• Option C is incorrect: Entrepreneurs retain ultimate liability for business risks; hiring a CEO does not transfer full risk responsibility.
• Option D is correct: As the owner of the company, an entrepreneur has the authority to hire, fire, and replace managers to align with business goals.

Answer:

D. An entrepreneur can fire and replace the managers of their company.