One of the Ways to Deal with External Cost Is

question 45

Multiple Choice

One of the ways to deal with external cost is:

• A) to rely on a good behaviour.
• B) to invest in technological development.
• C) to penalise those who bear the external cost.
• D) to include the external cost in market price.

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Definitions:

Loan Default

Failure to meet the legal obligations or conditions of a loan agreement, such as not making payments on time.

Engagement Letter

A formal document outlining the scope of services to be provided by a professional firm to a client, often used in accounting and law.

Audit Work

The process of reviewing and assessing the financial statements of an organization to ensure accuracy and compliance with accounting standards.

Contractual Agreement

A legally binding arrangement between two or more parties that outlines the terms and conditions of their relationship or transaction.