The Original 'Long Box' Packaging of CD's Is an Example

question 12

Multiple Choice

The original 'long box' packaging of CD's is an example of

• A) a positive production externality
• B) a negative production externality
• C) an envirotech industry
• D) a negative consumption externality

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Definitions:

Equity in Subsidiary Earnings

The share of earnings attributed to the parent company from its ownership interest in a subsidiary.

Equity Method

An accounting method used to record investments in associate companies where the investor has significant influence but not full control, typically 20%-50% ownership. The investor's share of the investee's net income or loss is reflected in the investor's financial statements.

Net Income

A company's profit after deducting expenses and taxes from revenue.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.