When One Firm Sells Its Pollution Permit to Another Firm

question 450

Multiple Choice

When one firm sells its pollution permit to another firm,

• A)both firms benefit.
• B)the total amount of pollution remains the same.
• C)the total amount of pollution decreases.
• D)Both a and b are correct.

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Definitions:

Tender Offer

A financial term referring to a public bid by a person or company proposing to buy shares from shareholders of a public company at a specified price within a certain time.

Full Market Value

The highest price a willing buyer would pay and a willing seller would accept for an asset in an open and competitive market.

Assumed Liabilities

Obligations that a company takes on when it purchases another company or its assets.

Acquiring Assets

The process of obtaining ownership or control of assets, which can include tangible property like real estate or intangible property like intellectual property rights.