When No One Owns a Particular Resource

question 111

Multiple Choice

When no one owns a particular resource

• A) property rights are clearly defined.
• B) individuals have legal recourse for any damages caused to their resource.
• C) no one has any incentive to consider externality spillovers associated with that resource.
• D) positive externalities will arise.

---

Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Amortization

The process of gradually writing off the initial cost of an asset over a period.

Non-Monetary Items

Items on the balance sheet not easily converted to cash, often valued at historical cost, such as property, plant, and equipment.