"Since the Wind and the Flowing Rivers Can Take Away

question 260

Multiple Choice

"Since the wind and the flowing rivers can take away industrial waste without charge, polluting is a profitable activity even when people are seriously harmed downwind or downstream, unless environmental regulators stop it." This statement is

• A) false if the property rights of downwind or downstream individuals are protected.
• B) true if the property rights of industrialists are enforced.
• C) never true.
• D) always true.

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Definitions:

Income Summary

Income Summary is an account in the general ledger used to transfer the revenues and expenses of an accounting period to the retained earnings account.

Salary Allowances

Compensation above the base pay, often for specific purposes such as housing, transportation, or cost of living adjustments.

Profit And Loss

A financial statement detailing the revenues, costs, and expenses incurred during a specific period, highlighting a company's net profit or loss.

Two Proprietorships

Two separate businesses or commercial ventures, each owned by a single individual.