An Opportunity Cost Is

question 32

Multiple Choice

An opportunity cost is:

• A)a cost which may be saved by not adopting an alternative.
• B)the difference in total costs which results from selecting one alternative instead of another.
• C)a cost which may be shifted to the future with little or no effect on current operations.
• D)the potential benefit forgone by selecting one alternative instead of another.

---

Definitions:

Potential Cuts

Potential cuts refer to possible reductions or decreases, typically in budgets, expenditures, or workforce, being considered to align with financial goals or constraints.

Net Liquid Balance

The amount of cash available after accounting for all liquid assets and subtracting current liabilities.

Uncommitted Cash

Funds that are not currently locked into investments or obligations and are available for immediate use.

Involuntary Bankruptcy

A legal process initiated by creditors seeking to have a debtor's assets distributed to satisfy unpaid debts.