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2 September, 13:00

An entrepreneur: a. always makes a profit b. generally avoids risky situations c. claims the residual (i. e., whatever is left over) after other resource suppliers are compensated d. is a parasite that benefits by not paying other resources for their services e. is the manager who runs an enterprise and keeps the customers happy

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  1. 2 September, 13:15
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    Option C Claims the residual

    Explanation:

    The reason is that the entrepreneur can only claim the part of the investment which is his own investment in the company. So this means that the company is able to claim the residual amount which is left after all the liabilities are paid off. So the amount left is his personal investment in the company.

    Option A - The entrepreneur not necessarily makes profit all the times.

    Option B - The risk profile of the each entrepreneur is different from the other.

    Option D - Is not a parasite because he has to pay suppliers to stay in business

    Option E is also incorrect because though an entrepreneur runs the company but it is not always the case that the entrepreneur is keeping the customers happy because most startups collapse in start because of the poor management and poor feedback of customers.
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