External Costs Are the Difference Between

question 11

Multiple Choice

External costs are the difference between

• A)Social costs and private costs.
• B)Benefits and costs.
• C)Average and marginal costs.
• D)Marginal social benefits and marginal social costs.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Minority Active Investment

An investment where the investor holds a non-controlling interest in a company but is still actively involved in its management or operations.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized and subsequently adjusted for the investor’s share of the net assets of the investee, including recognized income or loss.

Cost Method

An accounting method used to record investments in which the investment is recorded at its acquisition cost without recognizing subsequent changes in market value.