Which of the Following Actions Would Most Likely Have an External

question 172

Multiple Choice

Which of the following actions would most likely have an external benefit?

• A) eating a peanut butter sandwich
• B) throwing trash out your car window as you drive to class
• C) sleeping
• D) attending college
• E) developing a better marketing strategy for Honda

---

Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control them.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of its equity.

Net Income

Net earnings of a firm post the subtraction of taxes, costs, and other expenditures from its aggregate revenue.

Significant Influence

The power to participate in financial and operating policy decisions of a business, but not control those policies.