Match the Following Profit Measures to Their Definitions

question 32

Multiple Choice

Match the following profit measures to their definitions.
-Net profit.

• A) A comparative indicator of profit in relation to sales value.
• B) Gross profit less all operating expenses but not interest and taxes.
• C) A measure of company performance after deducting operating expenses and interest but not taxes.
• D) A simple measure of profit obtained from the sale of goods and services. Also referred to as sales profit.

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Definitions:

Diagram

A visual representation that outlines, explains, or clarifies complex data or relationships using symbols, icons, lines, and texts.

Collusive Oligopoly

A market situation where a few companies control a large market share and agree, often illegally, to fix prices, limit production, or divide markets to maximize profits.

Price Increase

The rise in the cost of goods or services over time or due to market conditions.

Price Cut

A reduction in the selling price of goods or services.