ICSE Class X Economics 2019 Solved Papers
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Question : 20
Total: 40
The income earned by an entrepreneur is residual in nature. Explain.
Solution:
Residual income is the amount of net income generated in excess of the minimum rate of return income of an entrepreneur. It is residual in nature as entrepreneur bear risk and reward of risk is profit. Profit is income remaining after deducting all the direct and indirect expenses.
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