Question : Capital invested in the firms business is termed as
Option 1: Super profit
Option 2: Average profit
Option 3: Normal profit
Option 4: Capital employed
Answer (1)
12th Jan, 2024
Correct Answer: Capital employed
Solution : Answer = Capital employed
Capital invested in a firm's business is referred to as "capital employed." This includes all the funds contributed by shareholders and borrowed capital that are utilized in the company's operations. It encompasses both equity and debt financing and is crucial for assessing the efficiency of capital utilization and profitability.
Hence, the correct option is 4.
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