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State with Reason Whether You Agree Or Disagree with the Following Statement. Profit is a Reward for Bearing Risk Only. - Economics

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Question

State with reason whether you agree or disagree with the following statement.
Profit is a reward for bearing risk only.

Short Note

Solution

No, the above statement is only partially correct. This is because profits act as a reward for the entrepreneur for performing tasks such as production activities, organising, controlling the activities related to production and distribution, as well as bearing the risk of failure of the business.

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Chapter 7: Factors of Production - Exercise 5 [Page 61]

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Micheal Vaz Economics [English] 12 Standard HSC
Chapter 7 Factors of Production
Exercise 5 | Q 1 | Page 61

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