All of the Following Would Be Considered Explicit Costs of Operating

question 74

Multiple Choice

All of the following would be considered explicit costs of operating a business except

• A)rent paid to a landlord.
• B)bonuses paid to employees.
• C)a normal rate of return for investors.
• D)corporate income taxes.

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Definitions:

Time Preference

The tendency of individuals to value goods and experiences in the present more than in the future, influencing savings and investment decisions.

After-Tax Profit

The net income a company remains with after all the taxes have been subtracted from the total revenue.

Market Value

The price at which an asset would trade in a competitive auction setting.

Interest Rate

The cost of borrowing money or the return on investment, usually expressed as a percentage.