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Question

Operating profit is the profit a business earns from the business through the _________.

A
Operations
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B
Activities
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C
Both
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D
None
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Solution

The correct option is A Operations
Operating Profit is the profit which a business Earns through main business Activities of the business.
The money earned from the core business is known as operating profit.
The formula for calculating the Operating profit is
Operating Profit = Gross Profit – Operating Expenses – Depreciation – Amortization.
or
Operating Profit =
Net Profit + Interest Expenses + Taxes

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