Question

Explain the uncertainty bearing theory of profit

Answer 1

Answer:

This theory was propounded by an American economist Prof. ... According to Knight unforeseeable risk is called uncertainty beaming. Knight, regards profit as the reward for bearing non-insurable risks and uncertainties. He distinguishes between insurable and non-insurable risks.

Answer 2

Answer:

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ᴘʀᴏғɪᴛ ɪs ᴀɴ ᴇxᴄʟᴜsɪᴠᴇ ʀᴇᴡᴀʀᴅ ғᴏʀ ᴛʜᴇ ᴇɴᴛʀᴇᴘʀᴇɴᴇᴜʀ, ғᴏʀ ᴍᴀᴋɪɴɢ ʙᴜsɪɴᴇss ᴅᴇᴄɪsɪᴏɴ ᴜɴᴅᴇʀ ᴜɴᴘʀᴇᴅɪᴄᴛᴀʙʟᴇ ᴀɴᴅ ᴜɴᴄᴇʀᴛᴀɪɴ ᴇᴄᴏɴᴏᴍɪᴄ ᴄᴏɴᴅɪᴛɪᴏɴ. ɪɴ sʜᴏʀᴛ ᴋɴɪɢʜᴛ ᴛʜᴇᴏʀʏ ɪᴍᴘʟɪᴇs ᴛʜᴀᴛ ᴜɴɪɴsᴜʀᴀʙʟᴇ ʀɪsᴋs ᴀʀᴇ ᴜɴᴄᴇʀᴛᴀɪɴᴛʏ ᴏғ ʙᴜsɪɴᴇss ᴀɴᴅ ᴘʀᴏғɪᴛ ɪs ᴛʜᴇ ʀᴇᴡᴀʀᴅ ғᴏʀ ᴜɴᴄᴇʀᴛᴀɪɴᴛʏ ʙᴇᴀʀɪɴɢ.