An Externality Is

question 43

Multiple Choice

An externality is

• A)a cost of a transaction that is borne by a third party
• B)a benefit of a transaction that is enjoyed by a third party
• C)a cost or benefit that arises when market price changes
• D)any cost or benefit of a transaction that is not accounted for in the market price
• E)the external revenue generated by a firm

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Definitions:

Cultural Intelligence

The ability to relate to and work effectively across cultures and social contexts.

Functional Excellence

The mastery or high-level proficiency in specific functions or disciplines within an organization that drives superior business performance.

Decentralized Decision

A decision-making process distributed among various levels of an organization, allowing for quicker responses and employee empowerment.

Corporate Vision

A strategic declaration of a company's long-term objectives and desired future state, guiding its direction and decision-making.