Which of the Following Is Not a Theory of the Source

question 197

Multiple Choice

Which of the following is not a theory of the source of profit as discussed in the textbook?

• A)Uncertainty is a source of profits.
• B)Profit is the reward for alertness to arbitrage opportunities.
• C)Profit is the return to the entrepreneur as innovator.
• D)Profit is the return to those who are fortunate enough to own resources.

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Definitions:

Performance Evaluation Measures

Criteria or benchmarks used to assess the effectiveness and efficiency of an employee, department, or organization in achieving its goals.

Balanced Scorecard (BSC)

A strategic planning and management system used by organizations to communicate objectives, measure performance, and align business activities to the vision.

Customer Satisfaction

Refers to the degree to which a company's products or services meet or exceed customer expectations.

Rework Costs

Costs incurred to correct defective product or service before it is delivered to the customer.