Which of the Following Is a Residual Reward That Accrues

question 196

Multiple Choice

Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?

• A) opportunity cost
• B) earnings of employees
• C) economic profit
• D) interest earnings of corporate bondholders

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Simple Interest

Interest calculated only on the principal amount, or the original sum of money borrowed or invested, without considering the effect of compounding over time.

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.