Economic Profit (EP) Is Calculated as Follows

question 56

Multiple Choice

Economic profit (EP) is calculated as follows:

• A) EP = (ROI - r) * (capital invested) where r = cost of capital
• B) EP = (ROI + r) * (capital invested) where r = cost of capital
• C) EP = (ROI) * (capital invested)
• D) none of the above

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Definitions:

Punitive Damages

Financial compensation awarded by a court to the plaintiff, over and above the actual damages, to punish the defendant for egregious conduct.

Occupational Safety

Policies, procedures, and practices designed to protect employees from health and safety hazards at work.

Legal Environment

The framework of laws, regulations, and judicial decisions that govern the operations of businesses and affect their decision-making processes.