Is royalty a part of operating surplus?
Yes,
Royalty is part of the operating surplus.
Explanation:-
Operating surplus refers to income from Property and entrepreneurship. It includes the following items
Operating surplus = Income from Property + Income from entrepreneurship
Income from Property consists of
- Income from Rent
- Income from Royalty
- Income from Interest
Income from entrepreneurship consists of
- Income from Profit.
Thus the components of Operating surplus can be rewritten as:
Operating Surplus = Rent + Royalty + Interest + Profit
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