Stan Owns a Software Design Business

question 123

Multiple Choice

Stan owns a software design business.He obtained a bank loan to buy computer equipment for his business.He pays $1,000 per month for interest on the loan.He has 10 employees, each of whom is paid $4,000 per month.Because his business has been successful, next month he will increase employee wages to $5,000.If the revenue from his business remains at its current level, Stan is considering an addition to his office.Which of the following statements regarding Stan's business is false?

• A)The payments Stan makes to his employees are variable costs and explicit costs.
• B)The monthly payment Stan makes for his bank loan is an implicit cost.
• C)The monthly payment Stan makes for his bank loan is a fixed cost.
• D)The time and effort Stan spends on his software design business is an implicit cost.

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Definitions:

Training Evaluation

The assessment of the efficiency and effectiveness of training programs in meeting the learning objectives and desired outcomes.

Organizational Issues

Challenges or problems within an organization that affect its operations or employee performance.

Internal Referencing Strategy

A method of assessment or evaluation that compares current performance with past performances within the same entity.

Measured Outcomes

Refers to the specific, quantifiable results obtained from implementing strategies, programs, or interventions.