What does expense mean in business?
Answer and explanation
Correct answer: Money spent to run a business
An expense is a cost incurred or money used while operating a business. Examples include rent, wages, electricity, transport, and materials purchased for work. Money received is income or revenue, customer happiness is a result rather than an expense, and profit is the surplus after relevant costs are deducted. Thus, option A gives the correct meaning.
Frequently asked questions
What is the correct answer to this question?
Money spent to run a business
Why is this the correct answer?
An expense is a cost incurred or money used while operating a business. Examples include rent, wages, electricity, transport, and materials purchased for work. Money received is income or revenue, customer happiness is a result rather than an expense, and profit is the surplus after relevant costs are deducted. Thus, option A gives the correct meaning.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance.
