Final answer:
The 5 basic functions of an enterprise owner are decision making, resource management, risk management, innovation and development, and compliance with regulations. These functions ensure the effective, legal, and competitive operation of a business in a free enterprise system.
Step-by-step explanation:
Basic Functions of an Enterprise Owner
The 5 basic functions of an enterprise owner include:
- Decision Making: The enterprise owner decides on the business's vision, sets goals, and determines the strategic direction.
- Resource Management: This function involves allocating resources efficiently, including finances, human capital, and materials, to run the business operations effectively.
- Risk Management: The owner assesses and manages potential risks that could impact the business, including financial, legal, and market-related risks.
- Innovation and Development: Owners must innovate products and services to stay competitive, requiring ongoing research and development.
- Compliance and Regulation: It is crucial to understand and adhere to legal requirements, such as zoning regulations, taxes, and labor laws, to ensure the business is operating within legal boundaries.
These functions are vital for the growth, stability, and legal operation of a business within a free enterprise system.