Ram, an entrepreneur is running a shoe manufacturing company. What functions can be performed by ram as an entrepreneur?
Answers
Function performed by Ram are:
Explanation:
1. Decision Making:
The most important venture of an entrepreneur is to determine the policy of production. An entrepreneur is to decide what to produce, how a whole lot to produce, how to produce, the place to produce, how to sell and’ so forth. Moreover, he is to figure out the scale of production and the proportion in which he combines the one of a kind factors he employs. In brief, he is to make vital commercial enterprise choices bearing on to the purchase of productive elements and to the sale of the completed goods or services.
2. Management Control:
Earlier writers used to reflect on consideration on the management control one of the chief features of the entrepreneur. Management and manipulate of the business are carried out via the entrepreneur himself. So, the latter have to possess a excessive diploma of administration capability to choose the right type of people to work with him. But, the significance of this characteristic has declined, as business presently is managed greater and greater with the aid of paid managers.
3. Division of Income:
The next fundamental characteristic of the entrepreneur is to make quintessential preparations for the division of complete profits among the exceptional factors of manufacturing employed by him. Even if there is a loss in the business, he is to pay rent, interest, wages and different contractual incomes out of the realized sale proceeds.
4. Risk-Taking and Uncertainty-Bearing:
Risk-taking is perhaps the most necessary function of an entrepreneur. Modern manufacturing is very volatile as an entrepreneur is required to produce goods or offerings in anticipation of their future demand.
Broadly, there are two sorts of danger which he has to face. Firstly, there are some risks, such as dangers of fire, loss of items in transit, theft, etc., which can be insured against. These are known as measurable and insurable risks. Secondly, some risks, however, can't be insured in opposition to due to the fact their likelihood can't be calculated accurately. These represent what is called uncertainty (e.g., aggressive risk, technical risk, etc.). The entrepreneur undertakes each these dangers in production.
5. Innovation:
Another distinguishing function of the entrepreneur, as emphasized through Schumpeter, is to make normal innovations — an invention of new products, new techniques and discovering new markets — to improve his competitive position, and to enlarge earnings.
To Learn more:
i) https://brainly.in/question/13150153
ii) https://brainly.in/question/12827717