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When a company's revenue is greater than its expenses, it means that ________.

A) the company earns a profit
B) the company spends more than it earns
C) the company's income is decreasing
D) the company needs to increase its spending
E) the company must increase its productivity

Marked as best answer by Fatboyslim


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Explanation: A) A company earns a profit when it takes in more revenue (earnings) than it spends. If a company spends more than it earns, it does not make a profit. Instead, it suffers a loss. A company can make a profit even if its income is decreasing, as long as its earnings continue to exceed its expenses. A profitable company may or may not need to increase its spending, depending on its business goals.


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Thank you soo much!

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