Which of the Following Is an Implicit Cost of Owning

question 90

Multiple Choice

Which of the following is an implicit cost of owning a business? (i) forgone savings account interest when personal money is invested in the business
(ii) interest expense on existing business loans
(iii) damaged or lost inventory

• A) (i) only
• B) (ii) only
• C) (i) and (ii)
• D) (i), (ii) and (iii)

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Definitions:

Thrifty

Showing care and consideration in managing resources and finances to avoid waste.

Deficit Reduction Legislation

Laws enacted to reduce the size of the budget deficit by increasing revenue or decreasing government spending.

Excise Tax

A tax levied on certain goods, services, or transactions, often with the aim of reducing consumption of the taxed items.

Personal Income Tax

A tax levied on individuals or households based on their total earnings from various sources, subject to exemptions, deductions, and tax rates.