Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

What is the full form of EBIT?

Options:

Earning Before Income Tax

Earning Before Interest and Tax

Expense Before Income and Tax

Expenses Before Interest and Tax

Correct Answer:

Earning Before Interest and Tax

Explanation:

The correct answer is Option (2) → Earning Before Interest and Tax

EBIT stands for Earnings Before Interest and Tax, which represents a company’s profit before deducting interest expenses and income taxes. It measures the firm’s operating performance and is also known as operating profit.