Practicing Success
Based on following paragraph answer the question :
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The components of profit are : |
Mixed income + Rent + Corporate saving Dividend + Corporate saving + Rent Dividend + Corporate saving + Corporate profit tax Dividend + Corporate saving + Mixed income |
Dividend + Corporate saving + Corporate profit tax |
The correct answer is option (3) : Dividend + Corporate saving + Corporate profit tax Profit is the income or reward of the entrepreneur for his contribution to manufacturing of goods & services. In other words, it is the residual income that an entrepreneur earns after paying off all other factors of production. The profit earned is used for three purposes:
Profit = Corporate Tax + Dividend + Retained Earnings (Savings) |