Instead of Valuing Natural Capital, Current Financial and Accounting Models

question 6

Multiple Choice

Instead of valuing natural capital, current financial and accounting models treat essential natural components such as water and air quality as ______ when accounting for profits and losses.

• A)free
• B)long-term depreciation
• C)short-term depreciation
• D)contingent valuation

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Definitions:

Governments

The organization, or system of organizations, responsible for governing a community, region, or country, typically with the authority to enact and enforce laws.

Overtaxed

The condition of being subject to excessive tax rates, leading to financial burden or disincentive for economic activity and investment.

World's Land Area

Refers to the total surface area of the Earth that is covered by land.

Forested

Describes an area covered with forests or having a large amount of tree cover.