The Cost And/or Benefit That Occurs Beyond the Direct Exchange

question 11

Multiple Choice

The cost and/or benefit that occurs beyond the direct exchange between an organizations and its stakeholders is a(n) :

• A)Externality.
• B)Negative externality.
• C)Positive externality.
• D)Cost/benefit analysis.

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Definitions:

Financial System

A network of institutions, markets, instruments, and mechanisms that facilitate the exchange of funds and the allocation of resources in an economy.

Certificate Of Indebtedness

A government or corporate bond that acknowledges a debt and the obligation to repay it with interest by a specified date.

Partial Ownership

Holding a fraction of the total equity or interest in an asset or a company, as opposed to full ownership.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.