Asked by ALEXANDER STEPHAN MACHHOLZ on Jul 25, 2024
Verified
"Profits are a reward for risk-bearing" would be a view held by
A) Joseph Schumpeter.
B) Frank Knight.
C) Henry George.
D) Karl Marx.
Profits
The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.
Risk-Bearing
The assumption of the risk and uncertainty involved in an enterprise or investment.
Frank Knight
An influential economist known for his work on risk, uncertainty, and the role these factors play in the economy.
- Understand the roles and views of entrepreneurs and risk in generating profits.
Verified Answer
CP
Chastity PattersonJul 25, 2024
Final Answer :
B
Explanation :
Frank Knight is known for his theory of risk and uncertainty, where he argues that profits are the reward for taking on uncertainty and risk. He believed that entrepreneurs and business owners who take on risk should be rewarded with profits.
Learning Objectives
- Understand the roles and views of entrepreneurs and risk in generating profits.