Artificial Intelligence (417) — CBSE Class 10 board question

The four common functions of an entrepreneur are:

1. Making Decisions – An entrepreneur makes daily decisions about what to produce, how much to produce, and where to sell.
2. Managing the Business – Plans the future, arranges raw materials, hires people, and checks if plans are followed.
3. Dividing Income – Distributes business money to buy materials, pay rent, and pay salaries.
4. Taking Risk – Bears the risk of losses due to fires, theft, or unsold goods.

(A fifth function is creating a new method, idea, or product.)

Source: Chapter 4, Session 2 – Functions of an Entrepreneur

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The question asks for any four functions, so listing exactly four with brief descriptions is sufficient. The source lists five functions (Figure 4.8): making decisions, managing the business, dividing income, taking risk, and creating a new method/idea/product — any four will earn full marks. Examiners look for the correct function name + a one-line description for each. Do not confuse functions (what they do) with qualities (how they think/behave).