Which of the Following Is an Example of a Negative

question 56

Multiple Choice

Which of the following is an example of a negative externality?

• A) A person buys a car that is a lemon.
• B) A worker is injured on the job.
• C) A new restaurant's success causes another to go out of business.
• D) A large wind turbine in a house's backyard ruins the view of other homeowners.

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Definitions:

Loss On Realization

Occurs when the actual amount received from the sale of an asset is less than its carrying amount on the books.

Statement Of Partnership Equity

A summary of the changes in each partner’s capital in a partnership that have occurred during a specific period of time.

Partner Capital

The amount of money and resources contributed by partners in a partnership that is allocated to their individual capital accounts.

Capital Accounts

Ledger accounts that show the investment amounts of owners or shareholders in a company.