The Best Example of a Positive Externality Is

question 72

Multiple Choice

The best example of a positive externality is:

• A) roller coaster rides.
• B) pollution.
• C) alcoholic beverages.
• D) education.

---

Definitions:

Bonus Method

A method in accounting for partnerships where a new partner's investment is recorded at an amount that is different from the stated value of the partnership's net assets, affecting the capital accounts of the existing partners.

Journal Entry

A journal entry is a record of a business transaction in the accounting books, detailing the financial effects of that transaction.

Net Income

The company's net income following the deduction of all costs and taxes from its earnings.

Income-Sharing Ratio

The proportionate distribution of profit or loss among partners in a partnership according to their agreed percentages.