Maria recently signed a franchise contract with Perfect Pizza.She will have to acquire inventory,purchase equipment,and advertise the restaurant's opening.If Maria's franchise fails,which investment will she never recover?
A) sunk costs
B) lump sums
C) variable fees
D) fixed costs
E) sales royalties

Question

Quizplus · Accepted Answer

Sunk costs are expenses that have already been incurred and cannot be recovered, regardless of the outcome of the business venture.

Maria Recently Signed a Franchise Contract with Perfect Pizza