Which of the Following Will LEAST Likely Generate Positive External

question 324

Multiple Choice

Which of the following will LEAST likely generate positive external effects to society?

• A)education
• B)fast food services
• C)health care
• D)requiring drivers to undergo periodic eye examinations

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Definitions:

Share Issue

A process by which a company distributes new shares to shareholders, either as part of a public offering or a private placement.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets acquired.

Ownership Interest

Refers to the percentage or portion of a company that is owned by a shareholder, indicating a claim on assets and possibly a right to the income of the company.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.