Paper 2 · Enterprise Skills
The role of an entrepreneur in production is to
Aset the wage rates that every business in the industry must pay.
Bcombine the other factors of production and bear the risk of loss.
Csupply the labour that is used on the production line each day.
Dlend money to the business at an agreed rate of interest each year.
Explanation: Land, labour and capital do nothing until someone brings them together and decides what to produce, and the entrepreneur is that fourth factor. Because the decision may be wrong, the entrepreneur carries the loss as well as taking the profit. Supplying labour, lending money and setting industry wage rates are the roles of workers, lenders and negotiation respectively.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q1