If Economic Profit Is Equal to Zero, Then the Entrepreneur

question 81

Multiple Choice

If economic profit is equal to zero, then the entrepreneur is making

• A)a normal profit.
• B)zero profit as recorded by accountants.
• C)negative profit as recorded by accountants.
• D)zero taxable income.
• E)an amount equal to the implicit rental rate.

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Definitions:

Current Year

Refers to the ongoing calendar or fiscal year, during which financial statements are being recorded and reported.

Barriers

Obstacles that prevent progress or make it difficult to achieve a desired outcome or goal.

Oriented Manager

A manager focused or aligned with specific goals, outcomes, or directions in their decision-making and leadership approach.

Advantage

A favorable or beneficial condition, circumstance, or characteristic that puts someone or something in a better position.