Which of the following are factors that typically motivate entrepreneurs as they start a business?

• A. Desire for profit and financial independence
• B. Interest in minimizing risk and avoiding competition
• C. Preference for job security in large corporations
• D. Motivation to follow strict organizational hierarchies

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the role of entrepreneurs in microeconomics. Entrepreneurs are individuals who organize resources to start and run businesses, often taking on financial risks in hopes of earning profits.
2. Step 2: Identify common motivations for entrepreneurs. Typically, entrepreneurs are driven by the desire for profit, financial independence, innovation, and the opportunity to be their own boss.
3. Step 3: Analyze each option given in the problem. Consider whether each factor aligns with typical entrepreneurial motivations:
4. - 'Desire for profit and financial independence' aligns well with entrepreneurial goals.
5. - 'Interest in minimizing risk and avoiding competition' is less typical, as entrepreneurs often accept risk and face competition.
6. - 'Preference for job security in large corporations' contradicts entrepreneurial risk-taking and independence.
7. - 'Motivation to follow strict organizational hierarchies' is more characteristic of employees in established firms, not entrepreneurs.
8. Step 4: Conclude that the factor 'Desire for profit and financial independence' best represents typical entrepreneurial motivation.