The Effect That an Additional User of a Good or Participant

question 90

Multiple Choice

The effect that an additional user of a good or participant in an activity has on the value of that good or activity for others is called a _______ externality.

• A)network
• B)social
• C)negative
• D)private

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Definitions:

Operating Capacity

The maximum output that an organization can produce with its current resources and constraints.

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends.

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing its financial leverage or debt.