Business profit is:

Question

Business profit is:

Quizplus · Accepted Answer

Business profit refers to the residual income remaining after subtracting all the explicit costs of doing business, whether they are fixed or variable costs. This leftover income is considered a true profit and is essential for a company's long-term success. Choice B, a normal rate of return, refers to the average return on investment that investors can expect to earn. Choice C, economic profit, is the difference between total revenue and both implicit and explicit costs of production, including the cost of capital invested in the business. Choice D, the return on stockholders' equity, refers to the earnings that a company generates for its shareholders based on the investment they have made in the business.

Business Profit Is