Which of the Following Is NOT an Explicit Cost

question 111

Multiple Choice

Which of the following is NOT an explicit cost?

• A)$200 to hire 2 gardeners for landscaping work
• B)$1500 to buy bricks for the driveway of your house
• C)$25 for lunch to serve to your workers
• D)the $100 in interest you lost by using your CD funds to pay for a new pizza oven

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Definitions:

Fixed Payments

Regular, equal amounts paid over a specified period until the total amount of debt is paid off.

Security Agreement

A legal document that provides a lender a security interest in a specific asset or property pledged as collateral.

Secured Goods

Items that are used as collateral for a loan or are subject to a security interest, ensuring the fulfillment of an obligation.

Acceleration

A provision in a mortgage agreement that allows the mortgagee to demand the entire balance due when the mortgagor misses a single installment payment.