What Are Sunk Costs

question 82

Essay

What are sunk costs?

---

Definitions:

Legal Formalities

Specific procedures or requirements prescribed by law for validating contracts, agreements, or other legal instruments.

Testator

An individual who has made a will or testament to bequeath their estate upon their death.

Executed

Completed or carried out fully; in legal terms, often refers to fully signed contracts or executed legal documents.

Property Disposal

The act of getting rid of property, whether by sale, destruction, donation, or other means, especially in the context of public or corporate assets.