Very Short Answer Type Questions:
If compensation of employees in a firm constitutes $55 %$ of net value added at factor cost of a firm; find the proportion of operating surplus.

Open in App

Solution

Let value added at factor cost of a firm be 100.
Therefore, compensation of employees in a firm = 55% of 100 = 55
Hence, operating surplus = value added at a factor cost - compensation of employees in a firm = 100 - 55 = 45
Answer:The proportion of operating surplus is 45%.

Suggest Corrections

Similar questions

Q. Very Short Answer Type Questions:
Give the meaning of operating surplus.

Q. Very Short Answer Type Questions
What is dissolution of a firm?

Calculate GDP at MP by:

(a) Expenditure method

(b) Income method

$\begin{matrix} (i) & Net domestic fixed capital formation & 50 (i i) & Operating Surplus & 50 (i i i) & Subsidies & 5 (i v) & Mixed income & 60 (v) & Pvt. Final consumption expenditure & 120 (v i) & Social security contributions by employees & 10 (v i i) & Net factor income from abroad & 0 (v i i i) & Indirect tax & 30 (i x) & Addition to stocks & 5 (x) & Compensation of employees & 70 (x i) & Government final consumption expenditure & 25 (x i i) & Net exports & 5 \end{matrix}$

Q. Short Answer Type Questions:
What is meant by compensation of employees? Discuss three elements of compensation of employees.

Q. Short Answer Type Questions:
Define operating surplus. State its components.

Join BYJU'S Learning Program

Very Short Answer Type Questions:If compensation of employees in a firm constitutes 55% of net value added at factor cost of a firm; find the proportion of operating surplus.

Let value added at factor cost of a firm be 100.Therefore, compensation of employees in a firm = 55% of 100 = 55Hence, operating surplus = value added at a factor cost - compensation of employees in a firm = 100 - 55 = 45Answer:The proportion of operating surplus is 45%.

Very Short Answer Type Questions:
If compensation of employees in a firm constitutes $55 %$ of net value added at factor cost of a firm; find the proportion of operating surplus.

Let value added at factor cost of a firm be 100.
Therefore, compensation of employees in a firm = 55% of 100 = 55
Hence, operating surplus = value added at a factor cost - compensation of employees in a firm = 100 - 55 = 45
Answer:The proportion of operating surplus is 45%.