Multiple Choice QuestionBecause a firm's entrepreneurs receive only the revenue left over after all other factors of production have been paid, they are considered Blank______.Multiple choice question.executivesstockholdersresidual claimantsincentive functions
Question
Multiple Choice QuestionBecause a firm's entrepreneurs receive only the revenue left over after all other factors of production have been paid, they are considered Blank______.Multiple choice question.executivesstockholdersresidual claimantsincentive functions
Solution
The correct answer is "residual claimants". This term refers to those who receive the remaining income after all costs, debts, and other expenses have been paid. In this case, it refers to entrepreneurs who only receive the remaining revenue after all other factors of production (like labor, capital, etc.) have been paid.
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