Theresa Is Considering Starting a Small Business

question 126

Multiple Choice

Theresa is considering starting a small business.She plans to purchase equipment costing $145,000.Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year.A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000.Theresa plans to operate the business for 6 years.Disregarding the effects of taxes,what will be the amount of annual net cash flow generated by the business?

• A) $24,000
• B) $56,000
• C) $80,000
• D) None of these answers is correct.

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Definitions:

Asylums

Historically, institutions for the care of people who were mentally ill, which have largely been replaced by modern psychiatric hospitals.

Mental Health Professionals

Individuals specializing in diagnosing, treating, and preventing mental health disorders, including psychologists, psychiatrists, counselors, and social workers.

General Paresis

Disease that leads to paralysis, insanity, and eventually death; discovery of this disease helped establish a connection between biological diseases and mental disorders.

Biological Theories

Concepts suggesting the biological basis behind various psychological functions and behaviors.