Employability: Entrepreneurial Skills – I · Class 9 · CBSE Information Technology (402)
Distinguish between a salaried employee and an entrepreneur based on risk-taking.
Practice question from Employability: Entrepreneurial Skills – I (Class 9 · CBSE Information Technology (402)), with the correct answer and a step-by-step solution.
medium · Subjective · Q-05D6E3
Distinguish between a salaried employee and an entrepreneur based on risk-taking.
Answer: A salaried employee works for an organization and receives a fixed income with very little financial risk regarding the company's losses. In contrast, an entrepreneur owns the business and bears the financial and operational risks, meaning they can earn high profits or face losses.
Solution
Employees have fixed wages and low risk, whereas entrepreneurs invest capital and face uncertainty, taking on high risk for potential rewards.
More from Employability: Entrepreneurial Skills – I
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