Bud Opened a Flower Shop

question 374

Multiple Choice

Bud opened a flower shop. He rented a building for $9,000 a year. To buy equipment for the store, he withdrew $10,000 from his savings account, which earned an annual interest rate of 3 percent. During the first year of operation, Bud paid $4,000 for utilities and $12,000 to his suppliers. The store's total annual revenue was $55,000. The market value of the store's equipment at the end of the year was $8,000. If Bud had not started this business, he would have continued to work as an employee at another flower shop for $30,000 a year. During the first year of operation, Bud

• A) received an economic profit of $30,000.
• B) received an economic profit of $20,000.
• C) incurred an economic loss of $2,300
• D) incurred an economic loss of $12,300

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Definitions:

Logic

The study of reasoning and argument, including the principles of correct reasoning and the analysis of valid inferences.

Role Conflict

A situation in which an individual faces competing expectations from different roles they assume in their life or career.

Interpersonal Conflict

A situation in which two or more people disagree, often emotionally, over issues of mutual concern.

Role Senders

Individuals or entities that communicate expectations and responsibilities to others, influencing behaviors and shaping roles within an organization.