EARNING POWER Definition

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EARNING POWER is earnings before interest and taxes [EBIT] divided by total assets.

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NORMAL PROFIT is the opportunity cost of using entrepreneurial abilities in the production of a good, or the profit that could have been received by entrepreneurship in another business venture. Like the opportunity costs of other resources, normal profit is deducted from revenue to determine economic profit. It is, however, never included as an accounting cost when accounting profit is computed.

DELIVERY ORDER is a document from the consignee, shipper, or owner of freight ordering the release of freight to another party.

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