Interest Is Considered A(n)

question 20

Multiple Choice

Interest is considered a(n)

• A) form of depreciation if the cost of borrowing increases.
• B) implicit cost when the firm owner uses his or her own funds to buy capital.
• C) explicit cost when the firm pays a bank to borrow money.
• D) return to entrepreneurship if the firm owner uses his or her own funds to buy capital.
• E) Both answers A and B are true.

---

Definitions:

Credibility

The quality of being trusted and believed in, often due to a reputation for reliability and authenticity.

Transition Device

Linguistic or rhetorical tools used to connect ideas smoothly in writing or speech, facilitating reader or listener comprehension.

Main Clause

A group of words that contains a subject and a predicate, expressing a complete thought and can stand alone as a sentence.

Tone

The attitude or approach that the writer or speaker takes towards the subject or the audience, often conveyed through word choice and style.