Profit is a contractual income.
State with reasons whether you agree or disagree with the following statements:
Profit is a contractual income.
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No, I do not agree with the statement.
- Contractual income is that income that is paid as per the terms and conditions of payment.
- Profit is not a contractual income.
- It is residual income because profit is the earning of an entrepreneur.
- It is the income that is left over after making payments to all factors of production.
- Profit may not be always positive.
- It can be zero or even negative.
- Thus, it is a fluctuating income.
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