Question

Given below are two statements:
Statement (I): Profit may be positive or negative.
Statement (II): Interest can not be zero or negative.
In light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Statement (I) and Statement (II) are true.
• B. Both Statement (I) and Statement (II) are false.
• C. Statement (I) is true but Statement (II) is false.
• D. Statement (I) is false but Statement (II) is true.

Hint:

Profit represents a risk-bearing reward, which can result in positive gains or negative losses.
Interest represents a cost of borrowing capital, which cannot logically go below zero under standard economic paradigms.

Answer 1

The Correct Option is A