If You Own a Building and You Decide to Use

question 153

Multiple Choice

If you own a building and you decide to use that building to open a restaurant,

• A)there are no sunk costs involved in this decision.
• B)there is no opportunity cost of using this building for a restaurant because you own it.
• C)the only cost relevant to this decision is the price you paid for the building.
• D)there is an opportunity cost of using this building for a restaurant because it could have been used in other ways.

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Definitions:

Supreme Court

The highest judicial court in a country or state, often having the final authority in legal disputes and constitutional matters.

Insiders

Insiders are individuals within a company or organization that have access to confidential information, often affecting their ability to trade company stocks.

Corporate Information

Data or knowledge concerning the operations, policies, and management of a corporation, often considered proprietary or confidential.

Rule 134

An SEC rule that allows issuers to communicate certain limited information about a securities offering without it being considered an offer to sell the securities, intended to maintain investor protections while allowing market communications.