What term refers to a person who organizes, manages, and assumes the risk of a business?

The term that refers to a person who organizes, manages, and assumes the risk of a business is "entrepreneur." This individual is at the heart of a business initiative, taking on the challenge of starting and running a new venture. Entrepreneurs are recognized for their ability to identify opportunities, develop business plans, secure funding, and bring innovative products or services to market.

They often operate in uncertain environments and must navigate various challenges such as competition, funding, and operational complexities. Their willingness to take risks is a key differentiator; while investors may provide the capital necessary for a business to grow, it is the entrepreneur who actively drives the business’s strategy and decision-making.

In contrast, the other roles mentioned like investor, manager, and administrator typically do not encompass the same level of risk assumption and initiative in creating a new business entity. An investor primarily provides financial resources, a manager oversees operations within an established organization, and an administrator handles administrative tasks without necessarily taking on ownership or risk involved in business creation.