Question

Which of the following is not a characteristic of entrepreneurship?

• A. It is an economic activity done to create, develop and maintain a profit-oriented organisation.
• B. It begins with identifying an opportunity as a potential to sell and make profit in the market.
• C. It deals with optimization in utilization of resources.
• D. It is the inability of an enterprise and an entrepreneur to take risks.

Hint:

Entrepreneurs are risk-takers. The inability to take risks contradicts the essence of entrepreneurship.

Answer 1

The Correct Option is D

Step 1: Understanding entrepreneurship characteristics.
Entrepreneurship is about recognizing opportunities, creating a profit-oriented organization, optimizing resources, and taking risks. The inability to take risks contradicts the basic nature of entrepreneurship.

Step 2: Comparison with other options.
• (A) It is an economic activity done to create, develop and maintain a profit-oriented organisation. Correct. This is one of the key characteristics of entrepreneurship.
• (B) It begins with identifying an opportunity as a potential to sell and make profit in the market. Correct. Identifying opportunities is a crucial part of entrepreneurship.
• (C) It deals with optimization in utilization of resources. Correct. Resource optimization is vital for the success of any enterprise.
• (D) It is the inability of an enterprise and an entrepreneur to take risks. Incorrect. Entrepreneurship involves taking risks, not avoiding them.

Step 3: Conclusion.
The correct answer is (D), as the inability to take risks is not a characteristic of entrepreneurship.

Final Answer: It is the inability of an enterprise and an entrepreneur to take risks.