Zelda Is a Recent Fashion Graduate

question 72

Multiple Choice

Zelda is a recent fashion graduate. She started her own apparel store with an investment of $300,000. In the first year she made a profit of $60,000. If she had taken up a job as a fashion editor for a magazine, she would have earned $50,000 as salary per year. Also, she could have invested her capital, $300,000, in treasury bonds and earned an interest of $12,000. Thus, the amount $62,000 ($50,000 + $12,000) would be Genevieve's

• A) social cost.
• B) break-even price.
• C) reservation price.
• D) opportunity cost.

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Definitions:

Aggregate Theory

A theory in partnership law that holds that a partnership is actually a conglomeration of the partners rather than a separate legal person with its own legal identity.

Flesh and Blood

A phrase used to denote a living human being, often emphasizing common human nature or familial bonds.

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.