The question of uncertainty is one which is often considered
to be very relevant to the study of the equilibrium of the
firm, It seems improbable that a firrn would emerge without
the existence of uncertainty. Bur those, for instance,
Professor Knight, who make the made of payment the
distinguishing mark of the firm—fixed incomes being
guaranteed to some of those engaged in production by a
person who takes the residual, and fluctuating, income-
would appear to be introducing a point which is irrelevant
to the problem we are considering‘ One entrepreneur may
sell his services to another for a certain sum of money,
while the payment to his employees may be mainly or
wholly a share in profits.