Moving from Left to Right,a U-Shaped Curve Starts with a

question 306

Multiple Choice

Moving from left to right,a U-shaped curve starts with a

• A) positive slope, reaches a maximum, then ends with a negative slope.
• B) positive slope, reaches a minimum, then ends with a negative slope.
• C) negative slope, reaches a maximum, then ends with a positive slope.
• D) negative slope, reaches a minimum, then ends with a positive slope.
• E) negative slope, reaches a minimum, then ends with a negative slope.

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Definitions:

Retained Earnings

The portion of net income which is retained by the corporation rather than distributed to its owners as dividends.

COGS

Cost of Goods Sold (COGS) refers to the direct costs associated with the production of goods sold by a company, including material and labor costs.

Gross Margin

Revenue less cost where cost is spending closely associated with production. Stated in dollars or as a percent of revenue. A fundamental measure of a business’s strength.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.