Which of the Following Is a Correct Definition of Operating

question 152

Multiple Choice

Which of the following is a correct definition of operating income?

• A) Sales minus variable expenses.
• B) Sales minus variable expenses and traceable fixed expenses.
• C) Contribution margin minus traceable and common fixed expenses.
• D) Income before interest and taxes (EBIT).

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business.

Raising Money

The process by which businesses and other entities obtain capital from external sources to finance operations, projects, or expansions.

Proprietorship Form

A business structure owned by a single individual where there's no legal distinction between the owner and the business.

Raising Money

Raising money involves securing funds for a company or project through various means like debt, equity, or grants.