An External Benefit Is a Benefit from an Activity That

question 33

True/False

An external benefit is a benefit from an activity that falls on a third party which is not involved in the activity.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Securities and Exchange Commission

A U.S. government agency responsible for enforcing federal securities laws, regulating the securities industry, and ensuring stock market integrity.

Legal Authority

An entity or institution that has the legally granted power to make decisions, and to enforce laws or rules.

Financial Statement

A summary report that comprehensively shows a company's financial performance and position at a specific point in time, including the balance sheet, income statement, and cash flow statement.