Question 11 Which statements indicate smart steps for the first-time investor?
OA.
Start making "opportunity cost" decisions now! Start giving up something
nice now for something a lot better later.
B.
When you get your first credit card, do not use that credit card to regularly
finance any purchases!
C. Never invest more than you can afford to lose.
OD. All of the above.

D. All of the above.

Explanation:

A first-time investor refers to an individual such as entrepreneur who is inexperienced but willing to allocate or commit his or her capital in anticipation of an expected financial return or profits in the future.

The following statements indicate smart steps for the first-time investor;

A. Start making "opportunity cost" decisions now. He or she should be willing to give up something nice momentarily for something a lot better in the future. Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

B. He or she shouldn't use his or her first credit card to regularly finance any purchases.

C. As a rule, do not ever invest any amount more than you can afford to lose in the event of a downturn.

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