When Calculating Economic Profit Using the 'Profit Less Capital Charge

question 3

Multiple Choice

When calculating economic profit using the 'profit less capital charge' method, the capital charge is subtracted from the operating profit to give the economic profit. Which of the following describes the type of operating profit that must be used?

• A) The operating profit after interest deduction and before tax deduction
• B) The operating profit before both interest deduction and tax deduction
• C) The operating profit after both interest deduction and tax deduction
• D) The operating profit before interest deduction and after tax deduction

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Definitions:

Long-Term Poor

Individuals or families who have lived below the poverty line for an extended period, often experiencing persistent financial hardship.

Welfare

Government programs designed to support and assist the well-being of the needy and impoverished through financial aid or services.

Black Poverty

The state of having insufficient financial resources among individuals or families within Black communities, often measured by income levels.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, national origin, disability, or other protected status rather than merit.