(b) Innovation
An entrepreneur always tries new ideas and creates new methods, products, or services to improve their business and meet customer needs.
Source: Session 2: Qualities and Functions of an Entrepreneur, Chapter 4
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The textbook lists the functions of an entrepreneur, which include making decisions, managing the business, dividing income, taking risk, and creating a new method/idea/product (innovation). The other options are incorrect because: (a) entrepreneurs try new ideas, not follow tradition; (c) entrepreneurs divide income among materials, rent, salaries, etc.; (d) making decisions is a key function, not avoiding them. For MCQs, eliminate wrong options using the source text.