Question

Write short notes on Risk and uncertainty-bearing function of an entrepreneur.

Answer 1

An entrepreneur performs the function of bearing the risks in the business. Every business is subject to variety of risks, such as the risk of failure of the business, risk of loss due to uncertain events etc. Some of these risks are insurable, while some are non-insurable. The insurable risks include the risk of death, risk of burglary, risk of fire etc. On the other hand, risks arising out of a change in government policies, changes in the demand for a product etc. are a part of the non-insurable risks.