Which factor of production is paid 'profit'?

Question

Quizplus · Accepted Answer

Profit is the return or reward for entrepreneurship. Entrepreneurship involves the ability and willingness to take risks in order to create or innovate products, services, or businesses. Profit is the portion of revenue that remains after all costs of production have been paid, including the cost of capital (interest), labor (wages), and land (rent). Profit is earned by those who successfully identify and exploit business opportunities, allocate resources efficiently, and manage risks effectively. Therefore, the factor of production that is paid profit is entrepreneurship.

Which Factor of Production Is Paid 'Profit