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An entrepreneur's income can be negative. - Economic Applications

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Question

An entrepreneur's income can be negative.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is True.

Explanation:

An entrepreneur's income can indeed be negative if the business incurs losses. Unlike employees who typically receive a fixed salary, entrepreneurs' incomes depend on the profitability of their ventures. If a business's expenses exceed its revenues, the entrepreneur may earn nothing and lose money, resulting in a negative income.

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Functions of an Entrepreneur
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Chapter 4: Factors of Production - QUESTIONS [Page 111]

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Goyal Brothers Prakashan Economic Application [English] Class 10 ICSE
Chapter 4 Factors of Production
QUESTIONS | Q 29. | Page 111
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