Which of the Following Statements Is True About Profits

question 41

Multiple Choice

Which of the following statements is true about profits?

• A) Profits are excluded from the circular flow of the income diagram.
• B) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends.
• C) Profits are considered one of the resources necessary for production.
• D) Profits are considered a cost of doing business.

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