If a Business Owner Decided to Expand Her Business but Rather

question 131

Multiple Choice

If a business owner decided to expand her business but rather than borrowing money from a bank used her own funds,then

• A) she would be unable to earn a normal profit.
• B) there is no cost associated with the expansion.
• C) she would forego the opportunity to earn interest on the money.
• D) the amount of her funds she used is an explicit cost.
• E) the amount of her funds she used is part of her normal profit.

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Kant

A reference to Immanuel Kant, an 18th-century German philosopher known for his work in ethics, particularly his formulation of the Categorical Imperative.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or reasoning.

Formulate

To formulate is to develop or create a plan, statement, strategy, or expression carefully and with precision.