When a Paper Mill Pollutes the Air as a Result

question 58

Multiple Choice

When a paper mill pollutes the air as a result of its production process, the firm must pay a fine. This is an example of:

• A) environment standards.
• B) communication.
• C) internalizing an externality.
• D) environmental communication.

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Definitions:

EU

A political and economic union of 27 member states that are located primarily in Europe, aimed at facilitating economic cooperation.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the United States.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.