The Trains of the Transcontinental Railway Company,when Shipping Goods,sometimes Emit

question 37

Multiple Choice

The trains of the Transcontinental Railway Company,when shipping goods,sometimes emit sparks that start fires along the tracks and damage the property of others.If Transcontinental does not pay for the damage it causes,what has occurred?

• A) Positive externality.
• B) Demand-side market failure.
• C) Supply-side market failure.
• D) All of these.

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Definitions:

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or units within the same company.

Net Income

Company's earnings following the deduction of all expenses and taxes from its revenue.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or departments within the same entity, often for internal record-keeping and consolidation purposes.