Activities That Generate External Costs Will Likely Be Carried Out

question 40

Multiple Choice

Activities that generate external costs will likely be carried out at levels that _____ those that would be efficient.

• A)are equal to
• B)are less than
• C)exceed
• D)compete with

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Definitions:

Economic Responsibility

The obligation of an organization to contribute to economic development while improving the quality of life of its workforce and the community.

Goods And Services

The tangible products (goods) and intangible items (services) that satisfy human wants or needs and are offered in the market.

Profit Earning

The act of generating financial gain or income from business activities after deducting all expenses, taxes, and costs.

Audit Area

A specific area, department, or aspect of an organization that is subject to an audit to evaluate compliance, performance, or risk.