Chapter 2: Problem 23

Which of the following best describes the role of an entrepreneur? (LO3) a) the inventor of something with great commercial possibilities b) anyone who made a fortune by purchasing stock in a dot-com before its price shot up c) inventors who parlay inventions into commercial enterprises d) any employee earning at least $\$ 200,000$ at a Fortune 500 company

Short Answer

Expert verified

Option c) "inventors who parlay inventions into commercial enterprises" best describes the role of an entrepreneur.

Step by step solution

Understand the term 'entrepreneur'

An entrepreneur is an individual who runs and manages a business or enterprise, investing personal effort, time, and money while taking risks to achieve a profit. Entrepreneurs usually create new businesses or create new value in existing businesses.

Analyze option a

"the inventor of something with great commercial possibilities" - While an entrepreneur may invent something, invention alone does not define their role. Entrepreneurs can also develop business ideas that are not necessarily inventions. This option is not a comprehensive definition of an entrepreneur.

Analyze option b

"anyone who made a fortune by purchasing stock in a dot-com before its price shot up" - This definition is more related to investors who are interested in maximizing their profits rather than being actively involved in the management and growth of a business. This option does not describe an entrepreneur.

Analyze option c

"inventors who parlay inventions into commercial enterprises" - This option identifies inventors who turn their inventions into profitable businesses. These entrepreneurs usually have a combination of technical and business skills. They develop a product or service with commercial potential and create a business around it. This option is closer to the role of an entrepreneur.

Analyze option d

"any employee earning at least $\$ 200,000$ at a Fortune 500 company" - This option is referring to highly paid employees, which does not necessarily make them entrepreneurs. An entrepreneur is an individual who takes risks, owns a business, and is accountable for its outcome. This option does not describe an entrepreneur.

Select the best description

Out of the four options provided, option c) "inventors who parlay inventions into commercial enterprises" best describes the role of an entrepreneur. This option captures the essence of creating value from innovations and managing commercial enterprises associated with them.