Entrepreneurial Profit
Barron's Business Dictionary:
Top
Entrepreneurial Profit
Compensation for the expertise and successful effort of a skilled businessperson. In accounting, any and all profit could be attributed to this effort. In economics, this is the portion over and above a normal profit for typically competent management.
| Entrepreneur, Entity, Entitlement Program | |
| Entry-Level Job, Environmental Assessment (EA), Environmental Impact Statement (EIS) |
Barron's Real Estate Dictionary:
Top
Entrepreneurial Profit
Compensation for the expertise and successful effort of a skilled businessperson. In accounting, any and all profit could be attributed to this effort. In economics, this is the portion over and above a normal profit for typically competent management.
See agents of production.
Example: A business run by an entrepreneur sells each product for $450. For each unit sold it pays $100 rent, $100 for labor, and $100 interest on capital employed. The entrepreneurial (accounting) profit is therefore $150. An economist would point out that the owner-operator could get a competent manager to run the business for $100; the special expertise of the entrepreneur therefore provided $50 in entrepreneurial profit.
See agents of production.
Example: A business run by an entrepreneur sells each product for $450. For each unit sold it pays $100 rent, $100 for labor, and $100 interest on capital employed. The entrepreneurial (accounting) profit is therefore $150. An economist would point out that the owner-operator could get a competent manager to run the business for $100; the special expertise of the entrepreneur therefore provided $50 in entrepreneurial profit.
| Entrepreneur, Entity | |
| Environmental Assessment (EA), Environmental Protection Agency (EPA) |
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
Read more
Mentioned in
Schumpeter, Joseph A.
(Quotes By)
Free Enterprise
(Quotes About)
Proto-Industry
(history 1450-1789)
Profit
(economics)
» More