The correct answer is D. All of the above.
Statement 1 is correct because the main purpose of a business firm is to earn profit. This is because profit is the reward that businesses receive for taking risks and providing goods and services to consumers.
Statement 2 is correct because capital management is dealt within business economics. This is because capital management is the process of acquiring, using, and managing a company’s financial resources. Business economics is the study of how businesses make decisions in the face of scarce resources.
Statement 3 is correct because cost analysis is required for cost control. This is because cost analysis is the process of identifying and measuring the costs of a product or service. Cost control is the process of managing costs in order to minimize expenses and maximize profits.
Here is a more detailed explanation of each statement:
- Statement 1: The main purpose of a business firm is to earn profit.
The main purpose of a business firm is to earn profit. This is because profit is the reward that businesses receive for taking risks and providing goods and services to consumers. Profit is calculated by taking the total revenue of a business and subtracting the total costs of the business. If the total revenue is greater than the total costs, then the business has made a profit. If the total revenue is less than the total costs, then the business has made a loss.
- Statement 2: Capital management is dealt within business economics.
Capital management is the process of acquiring, using, and managing a company’s financial resources. Business economics is the study of how businesses make decisions in the face of scarce resources. Capital management is an important part of business economics because it helps businesses to make efficient use of their financial resources.
- Statement 3: Cost analysis is required for cost control.
Cost analysis is the process of identifying and measuring the costs of a product or service. Cost control is the process of managing costs in order to minimize expenses and maximize profits. Cost analysis is an important part of cost control because it helps businesses to identify the costs that can be reduced or eliminated.