Entrepreneur is called the risk taking factor of production. Give reas

1.	Entrepreneur is called the risk taking factor of production. Give reason.OREntrepreneur possesses the quality of c-ordination. Give reason.
Answer» There are four factors of production namely land, labour, capital and entrepreneur. Entrepreneur is the factor which brings together or say coordinates all other factors of production for the production process. Without entrepreneur, economic activity is not possible. Entrepreneur is the person who establishes the enterprise and takes the risk of coordinating economic activities. This factor of production i.e. the entrepreneur does not get fixed return but tries to generate income by running the economic activity successfully. He/she may even incur a loss if the activity does not function well. Thus, entrepreneur is called the risk taking factor of production (or possesses the quality of co-ordination.)

Entrepreneur is called the risk taking factor of production. Give reason.OREntrepreneur possesses the quality of c-ordination. Give reason.

Answer»

There are four factors of production namely land, labour, capital and entrepreneur.

Entrepreneur is the factor which brings together or say coordinates all other factors of production for the production process.
Without entrepreneur, economic activity is not possible.
Entrepreneur is the person who establishes the enterprise and takes the risk of coordinating economic activities.
This factor of production i.e. the entrepreneur does not get fixed return but tries to generate income by running the economic activity successfully.
He/she may even incur a loss if the activity does not function well.
Thus, entrepreneur is called the risk taking factor of production (or possesses the quality of co-ordination.)