Someone who creates and runs a business and takes on the risk is called what?

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

Answer: (C)

Starting and running a new venture while bearing the financial risk is what an entrepreneur does. An entrepreneur identifies an opportunity, builds the business around it, and leads the effort to make it succeed, accepting the possibility that the venture could fail and lose money. This distinguishes them from an investor, who provides capital but doesn’t typically run the day-to-day operations; a manager, who runs an existing organization’s operations; and an employee, who works for someone else. So, the term that best fits is entrepreneur.