Scenario 9.1 Jane Left Her Job at Siemens and Started Her Own

Multiple Choice

Scenario 9.1
Jane left her job at Siemens and started her own boutique. She used to earn $50,000 annually at Siemens. She took a loan of $10,000 and used $20,000 from her personal savings to begin her venture. She agreed to repay the loan with 10% interest. Her business is bringing in $80,000 annually. She has rent and labor expenses of $15,000. Also assume that Jane could have used her own money i.e. $20,000 to buy stocks in Intel which would have returned 5% to her last year.
-The equity capital of a privately owned firm includes:

A) the owner's own dollars put into the firm.
B) the cost of raw materials.
C) the cost of labor resource used in production.
D) economic rent only.
E) the value added at each stage of production.