What is a correct formula to calculate business value?

Question

Options

• Aprofit = revenue / expenses
• Bprofit = revenue + expenses
• Cprofit = revenue * expenses
• Dprofit = revenue - expenses

• A
  8% (3)
• B
  3% (1)
• C
  3% (1)
• D
  87% (34)

Explanation

Business value is a measure of the benefits that an organization or a project delivers to its stakeholders, such as customers, employees, shareholders, or society. One way to quantify business value is to calculate the profit, which is the difference between the revenue and the expenses of an organization or a project. Revenue is the income that an organization or a project generates from its products, services, or Expenses are the costs that an organization or a project incurs to operate, produce, or deliver its products, services, or other outputs. Therefore, the formula to calculate profit is: profit = revenue - expenses. For example, if an organization has a revenue of $100,000 and an expense of $80,000, its profit

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