What Is Another Term Frequently Used When Referring to Operating

question 2

Multiple Choice

What is another term frequently used when referring to operating profit?

• A) Earnings before interest and taxes (EBIT).
• B) Earnings before interest, taxes, depreciation and amortization (EBITDA).
• C) Net profit.
• D) Earnings before interest (EBI).

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Definitions:

Capital

Capital refers to the financial resources or assets that are available for use in the production of further goods and services, including funds, equipment, and property.

Recognized Standards

Recognized standards refer to established norms, specifications, criteria, or guidelines that are widely acknowledged and accepted within an industry or profession to ensure quality, safety, and efficiency.

Substandard Performance

Inadequate or insufficient performance that fails to meet established or expected standards or criteria in a job role.

Franchise

A business model that allows one to license the rights to operate a business under an established brand and system.