Negative Externalities Cause Loss of Welfare Not Transmitted by Market

question 39

Multiple Choice

Negative externalities cause loss of welfare not transmitted by market factors.

• A) True
• B) False
• C) Uncertain

Understand the concept of political risk and its impact on international business operations.

Understand the importance of competitive advantage in the global economy.

Recognize the role of an organization's internal culture in shaping attitudes, behaviors, and performance expectations.

Identify different components of the general environment and their effects on organizations.

---

Definitions:

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, function, or product), including overheads and administrative expenses.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to asset liquidation or reorganization.

Accounting Fees

are the costs incurred by businesses or individuals for the services provided by accountants or accounting firms, which may include audits, financial analysis, and tax preparation.

Indirect Cost

Expenses not directly tied to the production of goods or services but necessary for the operation, such as utilities or administrative salaries.