An External Benefit Is A

question 53

Multiple Choice

An external benefit is a:

• A)negative externality.
• B)benefit that accrues to domestic firms as a result of the actions of foreign (external)firms.
• C)benefit that accrues to foreign (external)firms as a result of the actions of domestic firms.
• D)benefit that individuals or firms confer on others without receiving compensation.

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Definitions:

Current Ratio

A financial metric assessing a firm's capacity to cover its short-term debts using assets due within the same period.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Current liabilities are obligations a company must pay within one year, including accounts payable, short-term loans, and taxes owed.

Note Issuance

The process of creating and distributing a debt security or promissory note, promising to pay back a specified amount of money at a future date.