Asked by Emmanuel Rojas on Jul 12, 2024
Verified
The expected rate of profit is found by
A) multiplying expected profits by money invested.
B) dividing expected profits by money invested.
C) dividing money invested by expected profits.
D) none of these.
Expected Rate Of Profit
The anticipated return on investment expressed as a percentage; it motivates entrepreneurs and investors to undertake business ventures.
Expected Profits
The forecasted profitability of a venture or investment, taking into account anticipated costs and revenues.
Money Invested
The capital put into an investment vehicle with the expectation of generating a profit or income.
- Recognize the settings that significantly elevate the chances of investing.
- Gain an understanding of critical theories and concepts in economics that relate to investment and savings.
Verified Answer
PK
Philemon KerruJul 14, 2024
Final Answer :
B
Explanation :
The expected rate of profit is calculated by dividing the expected profits by the money invested. This provides the percentage of return on investment that can be expected. Multiplying expected profits by money invested (choice A) would result in total expected profits, not the rate of profit. Dividing money invested by expected profits (choice C) would not provide a meaningful measure of expected profitability.
Learning Objectives
- Recognize the settings that significantly elevate the chances of investing.
- Gain an understanding of critical theories and concepts in economics that relate to investment and savings.