The Benefit Sacrificed When One Alternative Is Chosen Over Another

question 11

True/False

The benefit sacrificed when one alternative is chosen over another is called opportunity cost.

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Definitions:

Earnings Per Share

A profitability measurement that calculates the amount of net income earned per share of stock outstanding.

Net Income

The net income of a company following the subtraction of all expenditures and taxes from its total revenue.

Outstanding Shares

The total number of shares of stock that are owned by stockholders on any particular date.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.