In the 1990s, the Monks of St

question 137

Multiple Choice

In the 1990s, the Monks of St.Benedict's the Monks determined that their ________ were ________ in the egg and cookie business, so they ________ .

• A) opportunity costs; too low; switched to providing private retreats
• B) opportunity costs; too high; switched to providing private retreats
• C) profits; too high; went out of business
• D) operating costs; too low; opened a new business

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Definitions:

Assets Test

A financial measure used to determine eligibility for certain government benefits based on the value of one's assets.

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.