The Cost of Not Doing Something Is A(n)

question 77

Multiple Choice

The cost of not doing something is a(n) :

• A)out-of-pocket cost.
• B)opportunity cost.
• C)direct cost.
• D)cost object.

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Definitions:

Private Saving

The amount of income that households save after accounting for their spending and taxes.

Investment

The allocation of resources, usually financial, into assets or projects expected to yield future profits or revenue.

Debt Finance

Raising capital through the borrowing of funds to be paid back at a later date, often with interest.

Equity Finance

A method of raising capital by selling company shares to investors, in exchange for ownership interest.