A Positive Externality Is One in Which There Is an External

question 47

True/False

A positive externality is one in which there is an external benefit bestowed on a third party>

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Definitions:

Annual Payments

The amounts that need to be paid once every year as part of a financial obligation.

EAR

Effective Annual Rate, a representation of an interest rate that takes into account the compounding of interest, shown as an annual rate.

Preferred Stock

A type of stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash payments or additional shares.