Final answer:
Entrepreneurs can recognize business opportunities through market research, market gaps, and personal interests. Berkeley, as an entrepreneur, must choose a suitable business structure, such as a sole proprietorship, partnership, or corporation, based on her business needs and goals.
Step-by-step explanation:
An entrepreneur can recognize an opportunity for a successful business through extensive market research, by identifying a gap in the market, or based on their interest and passion. In the case of Berkeley, who is opening a new retail business selling local products to tourists, she must decide on the right business structure. For a business owned by one individual who wants full control, a sole proprietorship could be suitable, whereas a partnership might be chosen if there are co-owners who want to share the responsibilities. For larger-scale endeavors, a corporation allows the business to be owned by shareholders and managed by a board and executives. When entrepreneurs invest their own money and seek additional funding through angel investors or venture capitalists, they demonstrate belief in their business's prospects and work to overcome informational asymmetries about the startup's potential for success.