Fran Is Considering Permanently Closing Down Her Beauty Salon

question 170

Multiple Choice

Fran is considering permanently closing down her beauty salon. A consultant advises her that if she stays open for business, she will have operating revenues of $300,000 and operating costs of $280,000. In addition, Fran has paid $40,000 for fixtures that can be resold for $15,000 after she closes the beauty salon. The value of Fran's beauty salon, if she closes it, is $____.

• A) -45,000
• B) -35,000
• C) -25,000
• D) -5,000

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Definitions:

Altruism

The selfless concern for the well-being of others, often leading to helping behaviors without expectation of personal gain.

3 Months

A specific duration of time equivalent to approximately 90 days or a quarter of a year.

Just World

The cognitive bias or belief that the world is fundamentally fair, leading individuals to rationalize an otherwise inexplicable injustice as deserved by the victim's actions.

Empathy Gap

The underestimation of other people’s experience of physical pain as well as the pain of social rejection.