Which of following rewards is associated with entrepreneurship as a factor of production?
Answer Details
Out of the options given, the reward associated with entrepreneurship as a factor of production is profit.
Entrepreneurship refers to the ability and willingness to take on risks and create something new, such as starting a business. When an entrepreneur invests their time, money, and other resources into a venture, they do so with the aim of generating profit.
Profit is the reward for successful entrepreneurship. It is the amount of money that remains after deducting all the expenses from the revenue generated by the business. Profit is important for entrepreneurs as it provides them with the incentive to continue taking risks and investing in their ventures.
Salaries, interests, and rents, on the other hand, are associated with other factors of production. Salaries are the reward for labor, interests are the reward for capital, and rents are the reward for land.