Which of the Following Statements Is True About Profits

question 41

Multiple Choice

Which of the following statements is true about profits?

• A) Profits are excluded from the circular flow of the income diagram.
• B) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends.
• C) Profits are considered one of the resources necessary for production.
• D) Profits are considered a cost of doing business.

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Definitions:

Job Performance

Refers to the effectiveness and efficiency with which an individual completes their work tasks and responsibilities.

Lower Levels

Refer to positions or employees in an organization that are at a lower rank or hierarchy, often involved in direct operations or production.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, and understanding.

Emotional Intelligence

The ability to recognize, regulate, and articulate one's own feelings, as well as manage connections with others wisely and with empathy.