________ Is the Amount a Business Earns After Deducting What

question 238

Multiple Choice

________ is the amount a business earns after deducting what it spends for salaries and other expenses.

• A) Profit
• B) Revenue
• C) Interest
• D) Dividends

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Definitions:

Initial Outlay

The upfront expenditure necessary to initiate a project or investment.

Incremental Cash Flows

The additional cash flow generated by a company as a result of a decision to undertake a new project or investment.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are worth more than the cash they cost.

Sunk Costs

Costs that have been incurred and cannot be recovered, not affecting future business decisions.