Which reward is received for enterprise services?
Answer and explanation
Correct answer: Profit
Entrepreneurship is the factor that organises other factors, makes production decisions, bears uncertainty and accepts business risk. The reward for providing these enterprise services is profit. Wages are the reward for labour, rent for land, and interest for capital. Therefore, option C is correct because profit corresponds to entrepreneurship.
Frequently asked questions
What is the correct answer to this question?
Profit
Why is this the correct answer?
Entrepreneurship is the factor that organises other factors, makes production decisions, bears uncertainty and accepts business risk. The reward for providing these enterprise services is profit. Wages are the reward for labour, rent for land, and interest for capital. Therefore, option C is correct because profit corresponds to entrepreneurship.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
