Match the Term with Its Definition

question 6

Multiple Choice

Match the term with its definition.
-A short-term loan

• A)cash budget
• B)line of credit
• C)net working capital
• D)percentage-of-sales technique
• E)pro forma financial statements
• F)spontaneous debt financing

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Definitions:

Profit Per Unit

The difference between the selling price and the cost of producing or purchasing one unit of a good or service.

Optimal Output

The level of production that maximizes a firm's profit or minimizes its costs, determined by where marginal cost equals marginal revenue.

Price to Clear

The market price at which the quantity supplied equals the quantity demanded, ensuring all goods in the market are sold.

Profit-Maximizing Output

The optimal production stage for a business, where the highest profit is realized at the point where marginal cost equals marginal revenue.