What is the full form of EBIT?

Option 1 -> This refers only to earnings before income tax, missing the "Interest" component that EBIT includes.

Option 2 -> This correctly identifies EBIT as Earnings Before Interest and Tax, a key profitability metric in financial analysis.

Option 3 -> This incorrectly uses "Expense" instead of "Earnings" - EBIT measures earnings/profits, not expenses.

Option 4 -> This incorrectly uses "Expenses" instead of "Earnings" - EBIT is a profit measure, not an expense measure.

Hence, Option 2: Earning Before Interest and Tax -> EBIT is a financial metric that measures a company's operating profitability by calculating earnings before deducting interest payments and tax expenses, making it useful for comparing companies with different capital structures and tax situations -> correct