Question

One of the ways that corporations might better take into account their responsibility for being good environmental citizens is to redefine the notion of profit to: Profit = Revenue - Cost of Goods Sold - ____

a) operating expenses
b) dividends
c) costs to society
d) loan interest

Answer 1

The missing component in the equation for profit is operating expenses. Operating expenses include all the costs incurred by a corporation in running its day-to-day operations, such as salaries, rent, utilities, and marketing expenses.

Step-by-step explanation:

The missing component in the equation for profit is operating expenses.

Operating expenses include all the costs incurred by a corporation in running its day-to-day operations, such as salaries, rent, utilities, and marketing expenses. By factoring in operating expenses as part of the cost of doing business, corporations can better account for their responsibility to society and the environment.

For example, if a corporation invests in eco-friendly technologies or implements sustainable practices, it may incur higher operating expenses but contribute to a healthier environment.