When Economic Profits Are Zero, Accounting Profits

question 293

Multiple Choice

When economic profits are zero, accounting profits

• A) must be positive.
• B) will be negative.
• C) will equal zero.
• D) could be positive, negative or zero.

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Definitions:

Donee Beneficiaries

Individuals or entities intended by the parties in a contract to receive benefits from the agreement's performance without being directly involved in the contract.

Incidental Beneficiaries

Individuals or entities who indirectly benefit from a contract despite not being explicitly mentioned as parties to the contract.

Assignee

An individual or entity to whom rights or interests have been transferred by another party.

Assignor

A party who transfers rights or interests in a property, contract or other legal entity to another party, known as the assignee.