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Question : When a similar type of business earns profit at a standard percentage of the Capital employed, it is called __________ .

Option 1: Normal return 

Option 2: Interest on loan 

Option 3: Interest on drawing 

Option 4: Super profit 


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Normal return 


Solution : Answer = Normal return 

When a business consistently earns profits at a standard percentage of its capital employed, it is termed a "normal return." This indicates a stable and predictable performance where the returns align with expectations based on the capital invested, ensuring a regular and expected level of profitability.
Hence, the correct option is 1.

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