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Answer :
Final answer:
The formula (d) 'Assets minus liabilities' best represents a company's value if sold, reflecting its book value or net worth. Economic profits consider both explicit costs and opportunity costs, differentiating from just accounting profits.
Explanation:
The formula that would best represent the value of a company's many resources if the company were to be sold to someone else is d. Assets minus liabilities.
This calculation provides what is known as the company's book value or net asset value, which is an estimate of the company's actual financial worth to potential buyers.
Accounting profits, calculated as total revenues minus explicit costs, give an insight into a company's financial performance over a period. Economic profits further take into account opportunity costs - the profits that could have been made in the next best alternative venture.
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