A person who starts up and takes on the risk of a business is called?

• A. Stakeholders
• B. Firm
• C. Entrepreneur
• D. Exchange

Answer: (C)

Starting up and taking on the risk of a business defines an entrepreneur. An entrepreneur is the person who identifies an opportunity, organizes the needed resources, and accepts the uncertainty of whether the venture will succeed, all in pursuit of bringing a product or service to market. That willingness to bear risk and drive a new venture is what makes this term the best fit for the description.

Stakeholders are the people or groups affected by the business—like employees, customers, or investors—not the person who starts the venture. A firm is the business entity itself, the organization that operates, not the individual who launches it. An exchange is a marketplace where goods, services, or financial instruments are traded, not the person who initiates the business.