Which term refers to people who manage, organize, and plan the other factors of production, taking on risk to gain profits?

• A. Entrepreneurs
• B. Capital
• C. Functional Areas
• D. Land

Answer: (A)

Entrepreneurs are the people who organize, manage and plan the other factors of production—land, labor and capital—and they take on the risk of the venture in hopes of earning profits. They make the big decisions about what to produce, how to produce it, and how to bring it to market, coordinating resources to create value. The other terms refer to resources (capital, land) or areas within a business (functional areas), not to people who coordinate and bear risk for profit.