Sunk costs are best described as

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Question 1: Which of the following is true when a company has very little debt?

  • The expected costs of bankruptcy will be moderate.
  • The expected costs of bankruptcy will be about zero.
  • The risk of bankruptcy is still significant.
  • Managers will work very hard to avoid bankruptcy

Question 2: Sunk costs are best described as:

  • money that has been lost.
  • an expenditure that did not produce a profitable product.
  • an expenditure on a product that was later discontinued.
  • expenditures on a proposed project that cannot be recovered whether the project is implemented or not.

Reference no: EM13819257

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