Final answer:
The claim that people who take risks in pursuit of business opportunities are called entrepreneurs is true. Entrepreneurs are characterized by their willingness to invest and take calculated risks to start and manage new businesses, contributing to economic innovation.
Step-by-step explanation:
The statement that people who take the risks of pursuing a business opportunity are called entrepreneurs is true. Entrepreneurs are individuals who organize and manage enterprises, especially businesses, usually with considerable initiative and risk. Beyond just being risk-takers, successful entrepreneurs calculate their risks very carefully, weighing potential benefits against the risks before investing their resources and effort into a project. They are at the core of economic innovation, bringing together the various factors of production to create valuable products or services, and play a crucial role in the growth and development of economies.
Entrepreneurs start their ventures by identifying a need in the market and endeavor to fulfill it by starting a business. This process involves choosing an appropriate business structure, such as a sole proprietorship, partnership, or corporation based on factors like the scale of business and investment requirements. Regardless of the form, the essence of entrepreneurship lies in the willingness to innovate and risk starting a business in anticipation of financial success and market contribution with improved or new products.