Question

Explain the difference between royalty and rent. State
the advantages to the landlord for imposing the
condition of minimum rent.​

Answer 1

Explanation:

Royalty = Note that the payment for the purchase of land, patent, or copyright is a capital expenditure and recorded as fixed assets. When the payment is made for the use thereof, it is a Royalty.

rent state = Rent is mostly payable according to time, as per day, per week, per month or per year etc. But the payment of royalty depends on yield or production. Payment of royalty is a business expense.