To Isolate the Returns Associated with Investing Decisions Only,the Measure

question 59

Multiple Choice

To isolate the returns associated with investing decisions only,the measure of profit used is:

• A)earnings before interest and taxation (EBIT)
• B)earnings before interest,taxation,depreciation and amortisation (EBITDA)
• C)gross profit
• D)profit after taxation

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Definitions:

Negative Externality

A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.

Acid Rain

Acid rain is precipitation with a high concentration of acidic components, typically resulting from industrial emissions that affect water, soil, and living conditions adversely.

Tradable Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution that can be bought and sold, aiming to reduce overall pollution in a cost-effective manner.

Direct Regulation

Government-imposed requirements or restrictions on the operations of businesses or individuals to enforce standards or achieve objectives.