When a Positive Externality Exists, Benefit to Third Parties Other

question 17

True/False

When a positive externality exists, benefit to third parties other than the buyers and sellers of a good will result from market exchange of the good.

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Definitions:

Consolidated Financial Statements

Financial statements that show the aggregated financial position and results of operations for a parent company and its subsidiaries.

Subsidiary

A company that is controlled by another company, commonly known as the parent company, through ownership of more than half of its voting stock.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold.

Trading Investments

Investments in securities for the purpose of selling them in the near term to generate profit from short-term price fluctuations.