Which of the Following Statements Is TRUE of a Cost-Benefit

question 18

Multiple Choice

Which of the following statements is TRUE of a cost-benefit analysis of a potential government project?

• A) Both asset value increases to the property owners and income increases to the property owners should be counted.
• B) Neither asset value increases to the property owners nor income increases to the property owners should be counted.
• C) The net increase in jobs in a community is a benefit.
• D) Future costs and benefits should be discounted to present values before being compared.

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Definitions:

Debtor

A party that has a financial obligation or debt to another party, referred to as the creditor, within a commercial transaction.

Automatic Stay

A legal provision that halts proceedings and lawsuits against a debtor immediately upon the filing of a bankruptcy petition.

Chapter 7

A provision of the United States Bankruptcy Code dealing with asset liquidation for the debtor to pay off creditors.

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize and restructure their debts in order to remain operational.