Refer to Scenario 7

question 20

Multiple Choice

Refer to Scenario 7.6 below to answer the question(s) that follow.
SCENARIO 7.6: Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually.
-Refer to Scenario 7.6. Your annual economic costs are

• A) $50,000.
• B) $80,000.
• C) $100,000.
• D) $130,000.

Understand the ethical use of confrontation and respect in client interactions.

Comprehend the principle of self-determination in client decisions.

Master the skill of conveying empathy in client interactions.

Identify barriers to attentive listening and strategies to overcome them.

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Definitions:

Inferior Goods

Goods for which demand tends to fall when income rises.

Incomes

Income is the financial gain, commonly acquired on a consistent basis, either from employment or investment returns.

Demand

The desire and ability of consumers to purchase goods and services at various prices, determining the quantity of a product that will be sold in a market.

Cross-price Elasticity

A measure of how the quantity demanded of one good changes in response to a change in the price of another good.