Final answer:
Only (ii) savings interest is lost when using personal money to invest in a business is considered a hidden or implicit cost of owning a business because it represents the foregone opportunity to earn interest on that money.
Step-by-step explanation:
The correct answer is (ii) savings interest is lost when using personal money to invest in a business, which means that b. only (ii) is considered a hidden cost when owning a business. This reflects the concept of implicit costs, which includes the opportunity costs of resources the firm already owns or resources the owners contribute.
An example of an implicit cost would be the foregone interest on savings used to fund the business instead of being kept in a bank to accumulate interest. While interest on corporate loans is a clear out-of-pocket expense, and therefore an explicit cost, and inventory damaged or lost can also be seen as an explicit cost because it can be measured directly through money spent on replacing or fixing the inventory.