David Owns the Building Out of Which He Operates a Small

question 7

Multiple Choice

David owns the building out of which he operates a small graphic arts business. He has extra space available and is considering converting the extra space into a gourmet coffee shop that
He would also run. A local businesswoman has offered to rent the extra space from him for her
Own needs. She has suggested she would be willing to pay $1,000 a month in rent. In
Estimating the cash flows associated with the gourmet coffee shop, David should

• A)ignore the $1,000 rent since it is a non-issue if David decides to undertake the coffee shop project.
• B)include the $1,000 rent as a cash inflow.
• C)include the $1,000 rent as a cash outflow.
• D)consider the $1,000 as an added benefit.

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Definitions:

Transport Of Farmers' Goods

The process or system through which agricultural products are moved from the place of production to markets or processing centers.

Social Entrepreneur

An individual who establishes an enterprise with the aim of solving social problems or effecting social change, often through innovative solutions.

Opportunities

Circumstances or situations that present favorable conditions for achieving certain goals or advancing one's interests.

Entrepreneurs

Individuals who organize, manage, and assume the risks of a business or enterprise, often innovating and driving economic growth.