The gain that occurs when the owner of an asset actually sells it for more than she paid for it is called a(n)
A) dividend.
B) realized capital gain.
C) coupon payment.
D) economic profit.

Question

Quizplus · Accepted Answer

The gain that occurs when the owner of an asset actually sells it for more than she paid for it is called a realized capital gain. A dividend is a distribution of a portion of a company's earnings to its shareholders. A coupon payment is the interest payment made to the bondholders. Economic profit is the difference between the total revenue and the total cost, including both explicit and implicit costs.

The Gain That Occurs When the Owner of an Asset