Which of the Following Statements Is True About the Relationship

question 288

Multiple Choice

Which of the following statements is true about the relationship among external, internal and social costs?

• A) External cost is the difference between social and internal costs.
• B) Internal cost is the sum of social and external costs.
• C) Social cost is the difference between internal and external costs.
• D) None of the above.

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Definitions:

Business Models

The strategic plan for how a company will generate revenue, make a profit, and sustain its operations, outlining sources of income, target customer base, products, and details of financing.

Business Model

A conceptual structure that supports the viability of a business and explains how it operates, makes money, and delivers value to stakeholders.

New Venture

The act of embarking on a new business endeavor that typically involves risk and innovation.

Value

The importance, worth, or usefulness of something to a consumer, often reflected in their willingness to pay for a product or service.