If a Company Has the Option of Leasing Some Factory

question 28

Multiple Choice

If a company has the option of leasing some factory space to another company or utilising it for another product line, then if the company chose the product line how should it handle the lost lease payments on the factory space?

• A) Ignore it.
• B) Include it as an opportunity cost.
• C) Include half of it as additional revenue for the project.
• D) None of the above.

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Definitions:

War on Terror

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An American politician who served as the 50th Speaker of the United States House of Representatives from 1995 to 1999 and was a key figure in the Republican Party's Contract with America.

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