PRC-3 · Chapter 1 · Question 46 of 61
Why do entrepreneurs and investors primarily undertake the immense financial risks required to launch a new commercial business?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Because they expect to be financially rewarded for their efforts through profits
Explanation
The fundamental driver of a commercial business is the profit motive; people create businesses expecting a financial reward (profit) for taking on risk.
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