Question

Discuss the decision-making function of an entrepreneur.

Most of the functions of an entrepreneur are performed by paid professionals. With a suitable example, explain the following function performed by an entrepreneur:

Decision Making

Answer 1

Decision-making is an important function of an entrepreneur. He has to take several decisions regarding his business. These decisions may be regarding the following:

1. Selection of the commodity to be produced.
2. Selection of the design and quality of the product.
3. Selection of the location of the plant.
4. Decision regarding the scale of production.
5. Selection of techniques of production to be employed in the business (i.e., choice between labour intensive and capital-intensive techniques of production).