Components of Operating Surplus in economics

Following are the components of Operating Surplus

It refers to income from Property and entrepreneurship. It includes the following items.  

Operating Surplus consists of two components

1. Income from Property
2. Income from entrepreneurship

Income from Property consists of three components

1. Rent
2. Royalty
3. Interest

Income from entrepreneurship consists of one item

1. Profit

Profit further can be divided into three components. Dividends:- It is part of the profit distributed among shareholders. It is also called ‘distributed profit’ Corporate/Corporation Profit Tax:- It is the part of profit that is paid to the government by way of profit tax. Undistributed Profit:- It is the part of the profit that is retained by the firms for future use. It is also known as ‘corporate saving’ or ‘undistributed profits’.