Question

In return for the risk to the entrepreneur, the received consideration is called :
(a) Rent
(b) Interest
(c) Profit
(d) None of these

Answer 1

Answer:

In return for the risk to the entrepreneur, the received consideration is called

(b) Interest

Answer 2

In return for the risk to the entrepreneur, the received consideration is called interest.

Explanation:

Every business is operated on the capital invested by all the partners.

In order to reward their risk, an additional amount is paid along with the principal amount.

This interest can vary as per the total amount invested by each partner.

In other words, higher investment, higher interest and vice-versa.