If a Business Owner Is Using the Extra Space at Home

question 87

Essay

If a business owner is using the extra space at home for his business, does it imply a zero opportunity cost for the space?

---

Definitions:

Eligible Dividends

Dividends that are qualified for special tax treatment under certain jurisdictions.

Tax Paid

The amount of money paid to the government as a result of taxable activities, such as income earned or goods sold.

Ending Fixed Assets

The value of a company's physical assets, such as property, buildings, and machinery, at the end of an accounting period.

Cash Flow From Assets

The total of cash flow to bondholders and cash flow to shareholders, consisting of operating cash flow, capital spending, and additions to net working capital.