The Salary Forgone by a Person Who Quits a Job

question 68

Multiple Choice

The salary forgone by a person who quits a job to start a business is an example of a (n) :

• A) outlay cost
• B) depreciable cost
• C) opportunity cost
• D) sunk cost

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Definitions:

Successful Corporation

A business entity that consistently achieves its goals, which may include profitability, market share expansion, and sustainable growth.

Continuous

A term describing processes or functions that proceed without interruption or cessation.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common stockholders.

Cumulative Preferred Stock

A type of preferred stock that entitles the holder to receive dividends in arrears before common stockholders can receive any dividends.