In actual business total returns represented by _ACDE_ amount to more than the sum represented by _ABDE_ (wages) plus _A'B'D'E'_ (interest). There are conditions that in practical life are continually bringing this to pass in different lines of business, though not in all of them at once. The real world is dynamic and therefore the true net profit, or the share of the _entrepreneur_ in the strict sense of the term, is a positive quantity. This income is always determined residually. It is a remainder and nothing else. It is what is left when wages and interest are paid out of the general product. To the _entrepreneur_ comes the price of the products that an industry creates. Out of this he pays wages and interest, and very often he has something remaining. There is no way of determining this profit except as a remainder. The return from the sale of the product is a positive amount fixed by the final utility principle. Wages and interest are positive amounts, and each of them is fixed by the final productivity principle. The difference between the first amount and the sum of the two others is profit, and it is never determined in any other way than by subtracting outgoes from a gross income. It is the only share in distribution that is so determined. _Entrepreneur's_ profits and residual income are synonymous terms. In the static state no such residual income exists, but from a dynamic society it is never absent. Every _entrepreneur_ makes some profits or losses, and in society as a whole the profits greatly predominate.