Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this?

A. Capital

B. Entrepreneurship

C. Labor

D. Land

B. Entrepreneurship

Explanation:

Entrepreneurship is the process of creating and running a new business. A person who takes the initiative to start a business is called the entrepreneur. The entrepreneur assumes all the risks associated with the venture but also enjoys its rewards. In practice, entrepreneurs see opportunities where others don't. They are innovators, skillful, and a source of ideas for new products and services.

Jessica is an entrepreneur. She is a skilled violinist who takes the risks of starting a preschool business. She will use her expertise to offer a service in her community. As the entrepreneur, she will have to provide the factors of production. For example, the land and building where the school will be located represent 'land 'as a factor of production. Should the business fail, Jessica will suffer all the losses.