Employability: Entrepreneurial Skills – II · Class 10 · CBSE Information Technology (402)
Distinguish between a traditional salaried employee and an entrepreneur with respect to risk and reward.
Practice question from Employability: Entrepreneurial Skills – II (Class 10 · CBSE Information Technology (402)), with the correct answer and a step-by-step solution.
medium · Subjective · Q-A3ED20
Distinguish between a traditional salaried employee and an entrepreneur with respect to risk and reward.
Answer: A salaried employee works for an organization and receives a fixed income with minimal financial risk regarding the company's profits or losses. In contrast, an entrepreneur establishes their own venture, bears all financial and operational risks, and receives unlimited rewards depending on the profitability and success of the business.
Solution
Employees trade security and a fixed paycheck for low risk. Entrepreneurs take on high financial and operational risks with the potential for high financial and personal rewards.
More from Employability: Entrepreneurial Skills – II
- Which of the following best defines an entrepreneur?
- What is the primary role of an entrepreneur in society regarding economic development?
- Which of the following represents a social benefit of entrepreneurship rather than a purely financial one?
- Which of the following is a common myth about entrepreneurship?
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