Scenario 13-2 Joe Wants to Start His Own Business.The Business He Wants

question 91

Multiple Choice

Scenario 13-2
Joe wants to start his own business.The business he wants to start will require that he purchase a factory that costs $500,000.To finance this purchase, he will use $200,000 of his own money, on which he has been earning 10 percent interest per year.In addition, he will borrow $300,000, and he will pay 12 percent interest per year on that loan.
-Refer to Scenario 13-2.For the first year of operation,what is the opportunity cost of purchasing the factory

• A)$10,000
• B)$20,000
• C)$34,000
• D)$56,000

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Definitions:

Physical Contact

The act of touching or being in close proximity to another person, which can communicate nonverbal messages or establish connection.

Initiate a Relationship

The act of beginning or establishing a connection or rapport with someone.

Skills and Strategies

Abilities and carefully designed plans or methods aimed at achieving a specific goal.

Uncertainty Reduction Theory

A communication theory positing that individuals engage in interactions to reduce uncertainties about each other, thereby increasing predictability and understanding in social situations.