Risk is shifted to the owners of a firm.In return they receive

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When owners bear the risk of a firm, they receive residual income, which is the amount left over after all expenses and normal profit have been paid. Normal wages would not be appropriate, as owners are not employees receiving a fixed salary. Normal profit is already accounted for in the expenses and would not be an additional reward. Marginal profit would not be appropriate, as it only accounts for the extra income earned from the sale of one additional unit and not the overall profitability of the firm.

Risk Is Shifted to the Owners of a Firm