Explain any four promotional functions of an entrepreneur.
Answers
Four promotional functions of an entrepreneur are as follows :
(1) Discovery of an idea :
An entrepreneur tries to visualise an opportunity for a particular type of business which can run profitably. Then the entrepreneur develops the idea with the experts to make the idea a reality.
(2) Detailed investigation :
The entrepreneur estimates the total demand for a particular product in the market. After deciding the product ,the entrepreneur has to arrange finance and manpower and also required raw material to start production.
(3) Assembling the requirements :
Next step is to decide on the requirements and hence an entrepreneur persuades some more people to join him. He may also be required to get patent right if he has invented something new.
(4) Financing the proposition :
An entrepreneur has to decide about the capital requirement of the enterprise. The requirements of finance are decided initially and eventually he has to find out the sources of short term and long term finance like shares, bond , debentures , loan , etc.
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Answer:
1. DISCOVERY OF AN IDEA - First of all, an entrepreneur discovers a buissiness idea
2. DETAILED INVESTIGATION - Once the idea is discovered, a through analysis is done to estimate the total demand.
3. ASSEMBLING THE REQUIREMENTS - Next steps the entrepreneur takes is to assemble the necessary resources.
4. FINANCING THE PLAN - The entrepreneur estimates the funds required, selects the sources of raising the funds and decides the capital structure of the enterprise.