What do you call the income generated from normal business operations?

What do you call the income generated from normal business operations?

• A. Net Profit
• B. Operating Revenue
• C. Gross Revenue
• D. Business Income

Answer: (B)

The income generated from normal business operations is referred to as operating revenue. This term specifically encompasses the earnings that a business makes from its core activities, such as sales of goods or services, before accounting for any costs that are not directly tied to these operations. Understanding operating revenue is crucial as it indicates how effectively a company is performing in its primary business activities, excluding other income sources like investments or asset sales. Other terms mentioned, like net profit and gross revenue, refer to broader concepts. Net profit is the total earnings after all expenses have been deducted, while gross revenue represents the total income before any deductions, including returns and discounts, thus encompassing more than just the earnings from normal operations. Business income can be a more general term that might include all types of income a business earns.

The income generated from normal business operations is referred to as operating revenue. This term specifically encompasses the earnings that a business makes from its core activities, such as sales of goods or services, before accounting for any costs that are not directly tied to these operations. Understanding operating revenue is crucial as it indicates how effectively a company is performing in its primary business activities, excluding other income sources like investments or asset sales.

Other terms mentioned, like net profit and gross revenue, refer to broader concepts. Net profit is the total earnings after all expenses have been deducted, while gross revenue represents the total income before any deductions, including returns and discounts, thus encompassing more than just the earnings from normal operations. Business income can be a more general term that might include all types of income a business earns.