Profits
A) are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.
B) are a cost of doing business because they are payments to others.
C) are not a cost of doing business because they are owed to resource owners.
D) are not a cost of doing business because they are often zero or negative.

Question

Quizplus · Accepted Answer

Profits are the main incentive for entrepreneurs to start a business and take on the associated risks. Without the expectation of earning profits, entrepreneurs would have no motivation to undertake business ventures. Therefore, profits can be considered a cost of doing business.