Zach Has the Following Information to Evaluate-His Current Salary of $75,000

question 129

Multiple Choice

Zach has the following information to evaluate-his current salary of $75,000 versus total revenues of $100,000 and expenses of $67,000 from starting a new business.How much is the opportunity cost associated with staying at his current job?

• A)$75,000
• B)$(8,000)
• C)$33,000
• D)$167,000

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Definitions:

Recognized Assets

Assets acknowledged on a company's balance sheet, including tangible and financial properties legally owned by a business.

Unrecognized Commitments

Obligations that are not recorded in the financial statements because they do not meet the conditions for recognition as liabilities.

Foreign Exchange Risk

The potential for financial loss due to fluctuations in the exchange rate between two currencies.

Import Purchase

The act of buying goods and services from a foreign country to be brought into the buyer's home country.