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
Answer (1)
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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