Which of the Following Statements Is True of Profit in a Business

question 77

Multiple Choice

Which of the following statements is true of profit in a business?

• A) It is the difference in the number of customers served between two financial years.
• B) It is the financial reward that comes from starting and running a business.
• C) It is the difference between the stock at the start and end of an inventory reporting period.
• D) It is estimated by calculating the total interest amount due when a business has availed multiple loans.

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Definitions:

Revocation

The act of officially withdrawing, cancelling, or annulling something, such as a license, will, or law.

Offeree

The person or entity to whom an offer is made in contract law.

Effective

Producing a decided, decisive, or desired effect, often used to describe rules, policies, or products that achieve their goals.

Lefkowitz V. Great Minneapolis

A landmark case in contract law where it was ruled that an advertisement giving specific details to the public constitutes a binding offer which when accepted completes a contract.