What Is a Firm's Gross Profit

question 28

Multiple Choice

What is a firm's gross profit?

• A) the difference between the sales and other income generated by the firm, and all costs, taxes, and expenses incurred by a firm in a given period
• B) the difference between sales revenues and the costs
• C) the difference between sales revenues and cash expenditures associated with those sales
• D) all of the above

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Definitions:

Vicarious Performance

A situation where an individual or entity performs a duty or obligation through another party, who acts on their behalf.

Assignment

The transfer of rights, duties, or interests under a contract or agreement from one party to another.

Money Damages

A sum of money awarded in compensation for loss or injury in a civil lawsuit.

Breach of Contract

The failure to perform any term of a contract, agreement, or settlement without a legitimate legal excuse.