Which factor of production is paid "profit"?

Question

Quizplus · Accepted Answer

Profit is the return to entrepreneurship, which is the factor of production that manages the other factors (land, labor, and capital) in order to produce goods and services. The earnings of entrepreneurship are called profits, and represent the compensation for risk-taking and innovation. Therefore, profit is not a payment for land, labor, or capital (which receive rent, wages, and interest respectively), but rather a reward for the successful coordination of all inputs in the production process. Human capital, while important, is not a separate factor of production but rather a characteristic of labor (e.g. skills, education, experience).

Which Factor of Production Is Paid "Profit