Which term describes the profits that each entity could distribute if distributions between the interrelated entities were made continuously until next to nothing was left?

A) Notional
B) Reciprocal
C) Marginal
D) Consolidated

Notional Profits

Hypothetical or estimated profits based on assumptions or projections, not actual earnings.

Reciprocal

Something that is given or done in return for something else; in financial contexts, it often relates to mutual agreements or exchanges.

Consolidated

Pertaining to the aggregation of financial statements of a parent company with those of its subsidiaries to present as a single entity for financial reporting purposes.