An Example of an Explicit Cost Is

question 126

Multiple Choice

An example of an explicit cost is

• A) a payment on a loan for a computer.
• B) the savings interest lost by investing $10,000 in capital instead of saving the money.
• C) forgone wages.
• D) the opportunity cost of a $50,000 investment into a building.
• E) the amount of money one could receive for renting a company truck to another business.

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Definitions:

Stock Classes

Different types of shares that a company can issue, each of which might have specific rights, privileges, or voting powers.

Capital Gains

The financial gain achieved when the selling price of an asset or investment surpasses its original buying price.

Appreciate

To increase in value or price over time.

Yield

Yield is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.