Exhibit 7-1 -Sally Owns a Small Business That She Operates in a She

question 12

Multiple Choice

Exhibit 7-1

-Sally owns a small business that she operates in a small building she owns. Given the information in Exhibit 7-1, Sally's economic profit is

• A) $80,000
• B) $50,000
• C) $65,000
• D) $35,000
• E) $24,000

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Definitions:

Tangible Assets

Physical items or properties owned by a person or company that have value, such as land, buildings, and equipment.

Intangible Assets

Non-physical assets that have value due to the legal rights or competitive advantages they provide, such as trademarks, patents, and copyrights.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage.

Guidelines

Recommendations or protocols aimed at steering actions or decisions in a specific direction or towards achieving a desired outcome.