If General Motors Is Earning Only a Normal Profit

question 146

Multiple Choice

If General Motors is earning only a normal profit,

• A)it is making economic profit
• B)it is breaking even
• C)it is suffering an economic loss
• D)it is covering only explicit costs
• E)it is covering only implicit costs

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Definitions:

Sales

The transactions involved in selling goods or services in return for money or other compensation.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment, which are reported on the balance sheet.

Operating Cash Flows

Cash generated from the core business operations of an entity, excluding financing and investing activities.

Total Liabilities

The combined debts and obligations that a company owes to entities outside of the company.