Which of the Following Is Likely to Generate a Positive

question 6

Multiple Choice

Which of the following is likely to generate a positive externality?

• A) An industry dumping chemical waste into a local river.
• B) An individual planting flowers in his garden.
• C) A teenager playing loud music at home.
• D) A tree being hit by lightning.

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Definitions:

Liabilities

Debts or financial responsibilities a business has to people or entities outside of it.

Increase Net Income

Actions or strategies aimed at raising the amount of profits a company keeps after deducting all expenses, taxes, and costs.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities have been subtracted, also referred to as shareholders' equity.

Unearned Revenue Account

A liability account that records payments received for goods or services not yet delivered or performed.