Net Profits Equals Profit Contribution Minus

question 27

Multiple Choice

Net profits equals profit contribution minus:

• A) variable costs.
• B) total costs.
• C) average total costs.
• D) fixed costs.

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Definitions:

Treasury Bond

Long-term, interest-bearing securities issued by the U.S. government as a means of borrowing money to fund government spending.

Corporate Stock

Represents ownership shares in a corporation, allowing shareholders to claim a portion of the company's profits.

Expected Rate

The projected or anticipated rate of return on an investment over a specific period.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain it.