If a Company Does Not Use One of Its Limited

question 65

Multiple Choice

If a company does not use one of its limited resources in the best possible way, the lost contribution to income could be called a(n) ________.

• A) business function cost
• B) carrying cost
• C) opportunity cost
• D) sunk cost

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Definitions:

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.