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Risk and Uncertainty in Profit Theory by Nail Korn is a document available to read on EtoBox.
What is Risk and Uncertainty in Profit Theory about?
According to the risk bearing theory of profits developed by F.B Hawley in 1907: - Profit is a reward for bearing risk, as the main function of entrepreneurs is to bear the risks involved in production. - The level of risk differs across industries, and therefore the rate of profit differs - higher risk leads to higher profits. - Criticisms of this theory include that there is not always a direct relationship between profit and risk, and it excludes other dynamic functions of entrepreneurs.
- Author
- Nail Korn
- Language
- EN