Final answer:
It is generally false that employees will receive large profits when an entrepreneurial business is successful. While business owners may gain substantially, employee compensation depends on the company's structure and may include wages, bonuses, or profit-sharing, but large profits are predominately for owners and shareholders.
Step-by-step explanation:
The statement "When an entrepreneurial business is successful, an employee will receive large profits" is generally false. While it is true that entrepreneurs who own a successful business stand to gain substantial monetary rewards, employees are typically compensated with wages or salaries and may receive bonuses or profit-sharing benefits if a company chooses to provide them. However, this is not guaranteed and depends on the compensation structure of the business.
When a business is successful, it often leads to improved productivity and benefits distributed among employees can include performance-related bonuses or profit-sharing schemes. Yet, the allocation of profits to employees is not an automatic or inherent outcome. A successful business may lead to better pay or enhanced job stability for employees, but large profits are mostly enjoyed by the business owners or shareholders.
In competitive markets, successful businesses often result in consumers getting better or less expensive products. Increased competition can drive prices down and improve product quality. Employees may indirectly benefit from the business's success through job security and potential wage increases, but these are side effects rather than direct participation in profits.