What do you understand by sweat equity?
GeneralClass 11CBSEAnswered 23 Jun 2026
Answer
- Entrepreneurs create equity as a direct result of their hard work. They bear the cost and risk of launching a new venture, undertake responsibilities for developing a new product, commercialising an invention, putting it to social use, adapting a technology and developing a new market. While managing all these activities they create assets for an enterprise which is known as sweat equity.
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