Common Ownership of Resources

question 39

Multiple Choice

Common ownership of resources:

• A)is a system by which the government allocates the rights to harvest renewable resources.
• B)may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.
• C)is an environmentally effective method of correcting for an externality problem in renewable resource conservation.
• D)efficiently controls the harvesting of renewable resources.
• E)usually helps in preventing market failures.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.

Current Ratio

A financial metric assessing a firm's capability to meet its short-term debts, determined by dividing its current assets by its current liabilities.

Days' Sales

The metric used to evaluate how efficiently a company can convert its inventory into sales, often expressed as days' sales in inventory.

Receivables

All money claims against other entities, including people, business firms, and other organizations.