An Externality Can Be Defined As

question 9

Multiple Choice

An externality can be defined as:

• A) An impact of an external group or entity on the reporting organisation.
• B) Impacts that a reporting organisation has on parties that have a direct financial relationship with the organisation.
• C) Impacts that a reporting organisation has on parties that are external to the organisation; parties that typically have no direct relationship with the organisation.
• D) Impacts on the organisation that are not of an economic nature and which are caused by environmental protection regulations.
• E) None of the given answers.

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Definitions:

Short-Term Bank Loan

A loan obtained from a bank that has a short repayment period, typically less than one year.

Best Course of Action

The most suitable or advantageous strategy or decision to take in a given situation.

Annual Rate

The interest rate for a whole year, as opposed to a rate for a shorter period.

Terms of Payment

The conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.