After graduation from high school, Richard Cruz decided to put up photocopying business because there was none near the vicinity of the school. Students had to walk far just to go to the nearest photocopying center. Richard knew that the demand for photocopying service among high school students was high because teachers often assigned readings and lecture potes that should be photocopied Richard opened his photocopying business on August 1, 2019. He rented a commercial space located in front of the high school gate for P 5,000 per month. He also borrowed P 50,000 (without interest) from his father to buy a brand-new photocopying machine costing P30,000 and to pay for other start-up expenses. He planned to pay thus P50,000 in four years. From his personal savings, Richard Spent P10,000 for supplies like bond papers, staplers, paper clips, and other supplies that would need in his business. He also paid P2,000 for business permits and licenses. And because Richard had to attend to his classes in a nearby university, he hired a staff with a weekly salary of P1,000 to operate the business Richard planned to visit his photocopying shop after his class every day to check on it.​