Question : The profit component of income method includes ___________________.
Option 1: Corporate tax
Option 2: Divident
Option 3: Retained earnings
Option 4: All of the above.
Answer (1)
Correct Answer: All of the above.
Solution :
There are three components of factor income compensation to employees, operating surplus, and mixed income.
Operating surplus includes, rent and royalty, interest and profit.
Profit includes, corporate taxes, divident and retained earnings.
Hence, Option D is correct.
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