If You Own a Building and You Decide to Use

question 141

Multiple Choice

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

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

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Definitions:

Specified Act

An action precisely described or defined within a legal document or law.

Executory

Describes a contract or lease that has not yet been fully performed or completed by all parties involved.

Formal

Adhering to established conventions or requirements; official.

Purchase Price

The amount of money paid to buy goods, services, or assets.