The Value Added by Any Firm Equals the Firm's ________

question 30

Multiple Choice

The value added by any firm equals the firm's ________ from selling the product minus ________.

• A)revenue; labor expenses
• B)revenue; the cost of inputs purchased from other firms
• C)profits; labor expenses
• D)profits; the cost of inputs purchased from other firms

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Definitions:

Indorsement

A legal term referring to the signing of a document, usually on its back, for the purpose of transferring rights to another individual.

Executory Promise

A commitment in a contract that has not yet been fulfilled or carried out by one or both parties.

Negotiable Instrument

A written promise certifying the payment of a certain sum of money, either upon request or at a predetermined date, with the document specifying the individual responsible for payment.

Value

Under the Code (except for negotiable instruments and bank collections), generally any consideration sufficient to support a simple contract.