Asked by Jazmin Simone on Jun 27, 2024
Verified
The net income of a firm is the firm's
A) profits.
B) retained earnings.
C) total revenue.
D) capital income.
Net Income
The total profit of a company after all expenses and taxes have been subtracted from revenue.
Profits
The financial gain obtained when the revenue from business activities exceeds expenses, costs, and taxes.
Retained Earnings
The portion of net income that is kept within a company rather than distributed to shareholders as dividends.
- Evaluate simple interest rates and grasp their consequences on loan agreements and investment decisions.
- Discern the concept of economic profit in juxtaposition with return on investment and interest rates in the market.
Verified Answer
JA
Juliana AnaniJun 27, 2024
Final Answer :
A
Explanation :
Net income is essentially the profit a firm makes after all expenses, taxes, and costs have been subtracted from total revenue.
Learning Objectives
- Evaluate simple interest rates and grasp their consequences on loan agreements and investment decisions.
- Discern the concept of economic profit in juxtaposition with return on investment and interest rates in the market.