Bruce Operates a Coffee Stall at the University

question 33

Multiple Choice

Bruce operates a coffee stall at the university.On 30 June 2016,he has $400 in his business bank account,the stall and equipment are worth $5200,ingredients on hand cost $60 and paper cups cost $10.Students owe him $120 and he owes his suppliers $370.He also owes his mother $4100,which enabled him to get started.What is Bruce's owners' equity?

• A) $400
• B) $1320
• C) $4000
• D) $5420

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Definitions:

Economies Of Scale

Cost advantages that enterprises gain due to an increase in size or output, resulting in lower costs per unit.

Small Populations

Demographic groups with a relatively small number of individuals, often making them subject to unique economic and statistical considerations.

Import Automobiles

The act of bringing cars into a country from abroad for use or sale.

Gains From Trade

The benefit that economies and individuals receive from the voluntary exchange of goods and services beyond what they could produce themselves.