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Assume that the size of the underground economy increases both absolutely and relatively over time. As a result,
Net Income
The amount of money a business keeps as profit after all expenditures, taxes, and costs are deducted from its aggregate revenue.
Preferred Dividends
Dividends that are allocated and paid to preferred shareholders before any dividends can be issued to common shareholders.
Operating Expenses
Costs that a business incurs through its normal business operations, excluding cost of goods sold.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.
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