A Small Business Owner Earns $75,000 in Revenue Annually

question 47

Multiple Choice

A small business owner earns $75,000 in revenue annually. The explicit annual costs equal $40,000. The owner could work for someone else and earn $20,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________.

• A)$10,000, $10,000
• B)$35,000, $10,000
• C)$35,000, $55,000
• D)$10,000, $55,000

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Definitions:

Paralegals

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Merger

The process by which two or more entities combine to form a single entity, often to enhance competitiveness or expand market reach.

Law and Equity

The comprehensive system in legal jurisdictions where remedies (solutions) can be provided under both common law (law) and fairness (equity).

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The system of government established by the Constitution, in which the national government and the state governments share sovereign power.