Answered: What type of income o profit does an…

What type of income o profit does an investor expect to receive in exchange for providing financial resources to a business?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 8DQ

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Question

7. What type of income o profit does an investor expect to receive in exchange for providing financial resources to a business?

Expert Solution

Step 1

Income is defined as the top line revenue or an most important revenue, which is calculated by proper monitoring of each and every transactions that gave the every penny in the business at the give time period. It is also known as the gross revenue. Whereas, Profit is an amount, which is left with the company after all the payments of expenses.

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