Which of the Following Statements Reflects a Situation in Which

question 11

Multiple Choice

Which of the following statements reflects a situation in which there are external costs?

• A)Suzanne invites her neighbors to a party on her birthday.
• B)Suzanne paints her house and landscapes her yard.Her newly beautified house and yard help her neighbors to sell their house for more than the asking price.
• C)Suzanne pays for a professional fireworks show for her family.Her neighbors also enjoy the show.
• D)Suzanne dumps her household garbage around the corner of the street.

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Definitions:

Limited Liability

A legal structure where an individual's financial risk is limited to a fixed amount, typically the value of their investment in a company.

Perpetual Existence

A term used to describe a company's ability to continue operating indefinitely unless it decides to terminate.

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and owner legally or financially.

Licensing

The act of granting permission to use intellectual property rights, such as trademarks, patents, or software, under specified conditions.