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Which of the following provides an example of an externality?
Patents
Legal documents that grant an inventor exclusive rights to their invention for a certain period, preventing others from making, using, or selling it.
Operating Activities
Activities related to the core business functions of a company, including revenue production and expense payment, directly impacting its cash flow.
Statement of Cash Flows
A financial report summarizing the total cash inflows from a company's operational activities and external investments, along with the cash outflows for its business operations and investments over a specific time frame.
Net Income
The net income of a business once all costs and taxes are subtracted from its total earnings.
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