Scenario 13-1 Joe Wants to Start His Own Business,which Will Require That

question 357

Multiple Choice

Scenario 13-1
Joe wants to start his own business,which will require that he purchase a factory that costs $400,000.Joe currently has $500,000 in the bank earning 3 percent interest per year.
-Refer to Scenario 13-1.If Joe purchases the factory with his own money,what is the annual implicit opportunity cost of purchasing the factory?

• A) $0
• B) $3,000
• C) $12,000
• D) $15,000

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Definitions:

Employee Welfare

Refers to the overall well-being and satisfaction of employees within an organization, encompassing physical, mental, and emotional health, as well as workplace safety and benefits.

American Coffee Chain

A retail business model that operates stores across the United States, serving coffee and related products.

Sales Revenue

The gross income earned from the sales of goods or services before removing any expenditures.

Industry Potential

The future growth opportunities and profitability that exist for companies within a particular sector.