Philip Owns and Operates a Gas Station

question 40

Multiple Choice

Philip owns and operates a gas station. Philip works 40 hours a week managing the station but doesn't draw a salary. He could earn $800 a week doing the same work for Terrance. The station owes the bank $100,000 and Philip has invested $100,000 of his own money. If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $300 per week, the business's economic profits are

• A) -$100 per week.
• B) $200 per week.
• C) $0 per week.
• D) $700 per week.
• E) $1,000 per week.

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Definitions:

Brand Managers

Professionals responsible for developing and maintaining a brand's image, strategy, and campaign to maximize brand equity.

Self-disclosure

The process of sharing personal, often private, information about oneself with others to build relationships or foster intimacy.

Favorable Image

A perception held by consumers or the public that a brand, product, or company is of high quality, trustworthy, or desirable.

Social Interactions

The process by which individuals act and react in relation to others, involving communication, influence, and exchange.