When the Owner of a Business Invests His or Her

question 76

Multiple Choice

When the owner of a business invests his or her own money in the business, they give up the interest this money could be earning in the bank. This forgone interest is called

• A) the marginal cost of diminishing financial services.
• B) the opportunity cost of equity capital.
• C) the opportunity cost of labor services.
• D) interest expense and is included as a cost in the accounting statements of the business.

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Definitions:

Emotional Intelligence

The aptitude to perceive, regulate, and communicate ones emotions, and to engage in interpersonal dealings in a sensible and empathetic way.

Set Of Abilities

A collection of skills and competencies that an individual possesses, which can be applied to perform tasks or solve problems efficiently.

Cognitive Dissonance

describes the psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, leading to a motivation to reduce the dissonance by changing beliefs or behaviors.

Emotional Intelligence

The ability to recognize, understand, and manage one’s own emotions and the emotions of others.