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Other Fields Homework Help Economics Topic started by: Izzy122 on Mar 3, 2019



Title: When an entrepreneur invests his own financial capital in order to start a business
Post by: Izzy122 on Mar 3, 2019
When an entrepreneur invests his own financial capital in order to start a business

• the firm's economic profits will exceed its accounting profits.

• the accounting costs increase because the funds would otherwise have to be borrowed.

• the opportunity cost of capital should be included in the economic cost of doing business.

• the investment is treated as a fixed cost, so it should not be considered as a cost of doing business.


Title: When an entrepreneur invests his own financial capital in order to start a business
Post by: Nikki_LYNN on Mar 3, 2019
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Title: When an entrepreneur invests his own financial capital in order to start a business
Post by: Izzy122 on Mar 3, 2019
Smart ... Thanks!