Differences and similarities between the Circular Flow and Entrepreneurial Profits
There are similarities and differences between the Circular Flow Income and Entrepreneurial Profits. To begin, both Circular Flow and Entrepreneurial profits are recognized by the businessperson in the books of accounts. The recognition is a requirement by the accounting regulatory bodies and stakeholders of the business. The other similarity between the Circular Flow profits and Entrepreneurial Profits is that they are important in the measurement of the performance of the business. {banner1} The differences between the two incomes are in their definition. Circular Flow income is the earnings made by the company, which is then useful in the payment of ...
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