Question

1. Which is the only factor of production that earns profit ? Why?​

Answer 1

• (e) Entrepreneur is the only factor of production that earns profit because in the entire business sphere no other factor of production shares the loss incurred by the entrepreneur. Entrepreneur is one, who performs all the functions associated with entrepreneurship (including risk bearing).

Answer 2

Answer:

An entrepreneur earns profit with his innovative ideas, efficiencies and willingness to take risks. Hence, an entrepreneur is the only factor of production which earns a profit.