PRC-3 · Chapter 9 · Question 8 of 45
Mr. Ali establishes a new software firm. He organizes the office space, hires programmers, purchases computers, and assumes all the financial risk if the firm goes bankrupt. Which factor of production does Mr. Ali represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Entrepreneurship
Explanation
The entrepreneur is the factor of production that organizes land, labor, and capital to produce goods and services while bearing the financial risk of the business.
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