Suppose You Quit Your Job to Start a Business

question 15

Multiple Choice

Suppose you quit your job to start a business.In the first month,your total revenue was $6,000.You paid:
$1,000 in monthly rent for office space.
$200 in monthly rent for equipment.
$3,000 to your workers in wages for the month.
$1,000 for the supplies you used that month.
You determine that your profit that month was negative $200.Why?

• A)You did the math incorrectly.
• B)You accounted for lost salary of $200.
• C)You accounted for lost salary of $1,000.
• D)Your equipment rent is an implicit cost.

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Definitions:

Involuntary Manslaughter

The unintentional killing of a person due to reckless or careless actions, without the intent to cause death.

Negligence

Guilty of neglect; lacking in due care or concern; act of carelessness.

Federal Law

Legislation enacted by Congress and signed by the president.

Legislation

Laws that have been passed by a governing body or the process of making or enacting laws.