Question

Which of the following statements does not clearly distinguish between entrepreneurship and management?

(a) Entrepreneurs found the business; managers operate it

(b) Entrepreneurs are the owners of their business; managers are employees

(c) Entrepreneurs earn profits; managers earn salaries

(d) Entrepreneurship is once for all activity; management is a continuous activity

Answer 1

(d) The sentence that does not clearly distinguishes between entrepreneurship and management is ‘Entrepreneurship is once for all activity; management is a continuous activity’. It is often said that once the business starts up, the role of entrepreneur ends and the manager comes in to run and stabilise it. However, entrepreneurs, even after the business is established, remain attached to the day-to-day activities. They also take up managerial role as and when required. In other words, as the managers are expected to play entrepreneurial role when needed, the entrepreneurs are also expected to handle the managerial function when needed.