An entrepreneur who does not pay him/herself may not realize the opportunity cost of working for oneself.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits an individual foregoes by choosing one option over the other. If an entrepreneur is not paying themselves, they may not realize that they have the option to earn a wage by working for someone else. By not paying themselves, they are essentially giving up the opportunity cost of making a salary elsewhere.

An Entrepreneur Who Does Not Pay Him/herself May Not Realize