If the Return on Capital Is Equal to the Cost

question 13

Multiple Choice

If the return on capital is equal to the cost of capital

• A)accounting profits are zero.
• B)economic profits are negative.
• C)accounting profit and economic profit are equal.
• D)economic profits are zero.

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Definitions:

Management Skill

The ability to make business decisions and lead subordinates within a company.

Overall Environment

The total surroundings and conditions in which an individual, organization, or system operates, encompassing both external and internal factors.

Key Advantages

Fundamental benefits or positive aspects that distinguish a concept, method, or entity from others, providing it with competitive advantages.

Controlling Behavior

Actions designed to dominate or dictate the actions, thoughts, or feelings of others through authority or manipulation.