Which of the Following Term Refers to the Share of an Activity's

question 115

Multiple Choice

Which of the following term refers to the share of an activity's marginal cost that is paid for by people other than those who carry out the activity?

• A)Beneficial cost
• B)External cost
• C)Marginal private cost
• D)Marginal social cost

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Definitions:

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Organizational Expenses

Costs incurred during the formation of a company, such as legal fees, registration fees, and promotional expenses.

Intangible Assets

Non-physical assets possessed by a company, such as patents, trademarks, and goodwill, that have value and can produce future economic benefits.

Balance Sheet

A report that outlines the total assets, obligations, and equity of shareholders of a company at a given time.