Final answer:
Pauley is an Entrepreneur, as they started a business designing and producing embroidered goods, showing risk-taking and innovative traits; Berkeley, similarly, needs to choose a suitable business structure for her retail business.
Step-by-step explanation:
Since Pauley has launched a new business that specializes in designing and producing embroidered goods, the correct answer to what Pauley is would be: A) Entrepreneur. An entrepreneur is someone who identifies a market need and decides to create a business to address that need. They are characterized by their ability to take risks, their creativity, and their role as organizers of the factors of production.
For Berkeley, who is opening a new retail business catering to tourists, selecting the right business structure is important. She has a range of options to consider, including sole proprietorship, partnership, and various forms of corporations. Her choice will affect tax implications, liability, and the level of control she wishes to maintain.
Just like Berkeley, the last factor of production for Pauley as an entrepreneur includes taking the risk, bringing in innovation, and combining the factors of production to create a product—that is, the embroidered goods—with the goal to meet consumer demand and achieve profitability.