Doug Wants to Start Up His Own Business,and Needs $25,000

question 142

Multiple Choice

Doug wants to start up his own business,and needs $25,000 to get it off the ground.He can either withdraw it from his savings account,where he currently earns 3 percent,or he can take out a loan for $25,000 and pay 5 percent interest.Doug should compare:

• A) the implicit cost of $750 to the explicit cost of $1,250 and choose to use his savings.
• B) the implicit cost of $750 to the explicit cost of $1,250 and choose to borrow the money.
• C) the explicit cost of $750 to the implicit cost of $1,250 and choose to use his savings.
• D) the explicit cost of $25,750 to the explicit cost of $26,250 and choose to borrow the money.

---

Definitions:

Detect Fraud

The process of identifying and preventing deceptive actions typically involving the intentional misrepresentation of information for personal gain.

Prevent Fraud

Measures and strategies put in place to detect, prevent, and minimize fraudulent activities.

Intelligent Agents

Software entities that perform tasks autonomously on behalf of users, based on certain rules or learning algorithms.

Intelligent Agents

Software entities that perform tasks autonomously, based on pre-set conditions or adaptive learning.