What Is an Externality

question 116

Essay

What is an externality?

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Definitions:

Internal Boundaries

Guidelines and distinctions set within an organization to delineate responsibilities, roles, and departments.

External Environment

External factors, forces, situations, and events outside the organization that can affect its performance and strategies.

Bureaucracy

A rational and efficient form of organization founded on logic, order, and legitimate authority.

Formal Authority

The power or right, usually derived from a position or office, to make decisions, give orders, and enforce obedience.