Discuss briefly the three components of operating surplus. - Vidyadip

Question

Discuss briefly the three components of operating surplus.

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Answer

The components of operating surplus are

Rent is a factor income earned by the owners for lending their services such as land, building etc.
Royalty is the income earned by a person/institution for lending Intellectual Property Rights and rights of sub soil assets.
Interest is the factor income earned by the owners for lending capital for production process.
Profit is a factor income earned for entrepreneurship.

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