What term describes a person who combines factors of production and takes on company risks?

The term that best describes a person who combines factors of production and takes on company risks is an entrepreneur. An entrepreneur plays a crucial role in the economy by organizing land, labor, and capital to create goods and services. They are the driving force behind innovation and business development, taking the initiative to start and manage new ventures.

Entrepreneurs not only bear the financial risks associated with their businesses—investing their funds and potentially facing losses—but they also benefit from profits if their ventures succeed. This willingness to take risks in pursuit of profit distinguishes entrepreneurs from others in the economic landscape, such as managers, investors, or laborers, who may contribute to a business but do not necessarily take on the same level of financial risk or responsibility in terms of combining the factors of production.

By recognizing the unique role of an entrepreneur, it becomes clear why this term accurately represents someone who brings together various resources to drive economic activity and create value.