If a Firm Traded on the New York Stock Exchange

question 109

Multiple Choice

If a firm traded on the New York Stock Exchange posts an accounting profit of $10 million,then the firm is making a positive economic profit

• A) only if the Securities and Exchange Commission (SEC) approves the accounting report.
• B) only if the firm's opportunity cost is less than $10 million.
• C) only if the firm's opportunity benefit is more than $10 million.
• D) only if the firm's management receives stock compensation.

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