Which of the Following Is an Example of an Implicit

question 72

Multiple Choice

Which of the following is an example of an implicit cost?

• A) Interest paid to a bank on a building loan.
• B) Liability insurance payments made only once a year.
• C) The cost of using capital an owner donates to the business.
• D) Dollars paid to a supplier for materials used in production.
• E) Wages paid to employees.

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Definitions:

Levels Exist

A phrase indicating that within a structure or system, multiple layers or stages are present.

Dimensions Vary

Dimensions vary indicates that aspects or attributes of a situation, object, or concept can change in size, scope, or magnitude.

Environmental Factors

Elements within the external environment that can influence an individual's health, behavior, and ability to function, including social, physical, and economic factors.

Organization Design

The process of shaping an organization's structure and roles to align with its business strategy, goals, and culture, aiming for efficiency and adaptability.