In Economics,the Difference Between a Firm's Revenues and Its Costs

question 61

Multiple Choice

In economics,the difference between a firm's revenues and its costs is referred to as

• A)physical capital.
• B)profit.
• C)capital gains.
• D)factor payments.

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Definitions:

Double Taxation

A phenomenon where income is taxed twice, typically once at the corporate level and again at the individual level when distributed as dividends.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and sell stock.

Shareholders

Individuals or institutions that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or debt accumulation.