Examlex
Which of the following is included in the government expenditure component of the expenditure approach to GDP?
Minimum Required Rate
The lowest rate of return or discount rate acceptable for a project or investment to proceed.
Residual Income
Residual Income (RI) is the net income an organization generates beyond the minimum rate of return on its investments.
Operating Assets
Assets that are used in the day-to-day operations of a business to generate income, including both current and long-term assets.
Net Operating Income
A financial metric that calculates a company's profitability by subtracting operating expenses from its total revenue, excluding taxes and interest.
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