An Externality Is the Impact of

question 96

Multiple Choice

An externality is the impact of

• A)society's decisions on the well-being of society.
• B)a person's actions on that person's well-being.
• C)one person's actions on the well-being of a bystander.
• D)society's decisions on the poorest person in the society.

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company, where the investment represents a significant influence over the investee.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after elimination of inter-company transactions and accounts.

Net Income

The amount of earnings left over after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholders, out of its profit or reserves, usually on a regular basis.