Which of These Is an Example of a Negative Network

question 2

Multiple Choice

Which of these is an example of a negative network externality?

• A) Bandwagon effect
• B) Pollution
• C) Snob effect
• D) Two-part tariff

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Definitions:

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from accounts receivable.

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.

Restrictive Policy

A policy implemented by a company or government to limit or control certain activities, often to ensure financial stability or compliance with regulations.