Which term refers to being willing to take risks in order to make a profit?

Study for the QTS Literacy Test. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The term that describes being willing to take risks to achieve a profit is entrepreneurial. Entrepreneurs are characterized by their ability to identify opportunities, innovate, and invest resources, often in uncertain environments, with the expectation of a financial return. This willingness to assume risks—such as starting a new business, launching a product, or entering a competitive market—is foundational to the entrepreneurial spirit, driving economic growth and fostering creativity in business.

Innovative refers to introducing new ideas or methods, which can be a part of entrepreneurship but does not alone capture the risk-taking aspect essential for profit-making. Passive denotes a lack of action or engagement, which is contrary to the proactive nature of taking risks. Conventional implies adherence to traditional methods and practices, which typically involves lower risk and less potential for significant profit compared to the entrepreneurial approach. Thus, entrepreneurial is the most appropriate term to describe someone who is willing to take risks to make a profit.

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