Profitability and Managerial Finance Responses


 

Which of the forthcoming statements are penny in contemplate to the intercommunity between representationing avail and economic avail?

In forming your acceptance, voicelessness the definitions in this website https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-profit-vs-economic-profit/#:~:text=Accounting%20Profit%20vs.%20Economic%20Profit%20Accounting%20profit%20is,flow%20that%E2%80%99s%20generated%20above%20all%20other%20opportunity%20costs

   

  • A. Accounting avail can be unequivocal duration economic can be denying at the selfselfsame duration.
  • B. Economic avail representation for the required income to investors, which representationing avail do not obviously do so.
  • C. Both a and b
  • D. Neither a nor b

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Assume that unequivocal economic avail exist among an assiduity. If that is happening, which of the forthcoming statements are penny? Always pick-out the best tally, plain if it strikes you as not a fully serene tally.

   

  • A. There is motive for added firms and economic media to invade into this assiduity.
  • B. Companies in the assiduity are earning avail and income on siege that are over the typical raze.
  • C. Both a and b
  • D. Neither a nor b
     

Assume that output is occurring at a aim where ultimate enrichment is correspondent to ultimate consume, but adown mediocre aggregate consume. Which of the forthcoming are penny?

   

  • A. Firms achieve be mitigated to egress the assiduity.
  • B. Accounting avail could be unequivocal or denying.
  • C. Both a and b
  • D. Neither a nor b.

An assiduity is currently unresisting output at a raze where typical avail are nature earned. Suddenly, as in some industries relish subsistence endowment during a pandemic, the assiduity experiences an growth in the insist for its products. Which one of the forthcoming is the most mitigated diversify?

   

  • A. Prices achieve growth and added economic media achieve invade into the assiduity.
  • B. Investor required income achieve growth and avail achieve live to be typical.
  • C. Both a and b
  • D. Neither a nor b.

What is meant by the term "mezzanine high?"