alleryStart learning →What does revenue mean for a company?
AThe expenses it incurs for rent, salaries, supplies and transport
BThe money left with it after every cost has been paid for
CThe money it receives by providing services or selling goods
DThe tools, machinery and buildings it uses to make its output
Answer & Solution
Correct answer: C. The money it receives by providing services or selling goods
1. Revenue is the money a company receives by providing services or selling goods to customers.
2. Costs are the expenses it incurs for rent, salaries, supplies, transportation and similar items.
3. What is left after all costs are paid is profit, not revenue.
4. Tools, machinery and buildings are capital, one of the factors of production.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.1 The Nature of Business_
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