Last Year Christine Worked as a Consultant

question 8

Multiple Choice

Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. Last year, Christine's explicit costs were ________, and her implicit costs were ________.

• A)$15,000; $43,000
• B)$18,000; $40,000
• C)$36,000; $140,000
• D)$51,000; $40,000

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Definitions:

Writing Requirement

A legal condition under certain laws requiring certain contracts to be in writing to be enforceable.

Order Instrument

A financial document that is payable to a specific person or entity, as named or endorsed on the instrument.

Specific Payee

A person or entity named in a negotiable instrument to whom or to whose order the money is directed to be paid.

Alternative Payees

Parties other than the original recipient designated to receive payments or benefits in specific arrangements.