What Is a Firm's 'Net Income

question 89

Multiple Choice

What is a firm's 'net income'?

• A)a measure of the firm's profitability over a given period
• B)the difference between the sales and other income generated by the firm, and all costs, taxes, and expenses incurred by the firm in a given period
• C)the last or 'bottom' line of the income statement
• D)all of the above

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Definitions:

Positive Synergies

The beneficial effects or outcomes that result from the cooperation or merger of two or more entities or processes.

Contracting Efficiencies

Improvements in performance or cost savings achieved through outsourcing or entering into contracts for services.

Agency Costs

Expenses stemming from conflicts of interest between principals (owners) and agents (managers) in a corporation.