Beth is considering leaving her current position to open a coffee shop.Beth's current annual salary is $56,000.Beth is going to invest $200,000 of her own money to start the business.Estimated annual revenue from the new business is $250,000.What is the outlay cost associated with the decision to open the coffee shop?
A)$50,000
B)$56,000
C)$200,000
D)$250,000

Question

Quizplus · Accepted Answer

The outlay cost is the initial cost of starting the business, which in this case is the $200,000 that Beth is investing. The annual salary she currently earns is not relevant to the outlay cost calculation. The estimated annual revenue is also irrelevant to the outlay cost calculation. Therefore, the correct answer is C.

Beth Is Considering Leaving Her Current Position to Open a Coffee