What best describes a person who seeks a profitable opportunity and takes risks to operate a business?

Study for the UofT MGT100 Fundamentals of Management Exam. Practice with quizzes and detailed study materials to excel. Prepare with clear explanations and valuable tips to ace your exam!

A person who seeks a profitable opportunity and takes risks to operate a business is best described as an entrepreneur. Entrepreneurs are innovatively inclined individuals who identify market needs or gaps and create solutions—often by starting their own businesses. They are characterized by their willingness to assume risks in pursuit of financial rewards and personal satisfaction, making them pivotal in driving economic growth and innovation. The entrepreneurial mindset also involves characteristics such as creativity, resilience, and the ability to navigate uncertainty, which are essential for successfully launching and sustaining a business.

In contrast, an investor typically provides the financial resources for a business but may not be involved in the day-to-day operations or strategic decision-making. A manager is primarily responsible for overseeing and coordinating the operations of a team or organization but does not inherently seek out new business opportunities or take startup risks. An executive usually holds a high-level position within an established organization and focuses on strategic decision-making and operational oversight, rather than initiating new ventures. This distinguishes entrepreneurs as the individuals who actively pursue and realize new business opportunities.

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