DECA Hospitality Services Team Decision Making Practice Exam

Which of the following is an example of entrepreneurship?

1. Elissa starts a company when she develops a new app

2. Chandra invests in stocks with her savings

3. Iris purchases a franchise

4. Michael starts a blog about fashion trends

The correct answer is: Elissa starts a company when she develops a new app

The best example of entrepreneurship in this context is illustrated by the scenario where Elissa starts a company after developing a new app. Entrepreneurship is primarily characterized by the act of creating, organizing, and running a new business, often with the aim of bringing innovative products or services to the market. By developing a new app, Elissa is taking initiative, assuming risk, and contributing to innovation—core elements of entrepreneurship. Starting a company involves not only the idea generation but also the willingness to navigate the challenges of launching and managing a business, which is exemplified in Elissa's actions. This demonstrates a proactive approach to business creation and captures the essence of entrepreneurial spirit. In contrast, investing in stocks, purchasing a franchise, or starting a blog, while they may involve entrepreneurial elements, do not fully encapsulate the creation and management of a new venture that Elissa's scenario does. These activities might relate to business but lack the direct innovation and substantial risk involvement associated with entrepreneurship as defined in a traditional sense.