An Example of a Contingent Environmental Cost Is

question 55

Multiple Choice

An example of a contingent environmental cost is:

• A) provisions for a potential oil-spill cleanup.
• B) when a firm produces a product that is difficult to dispose of safely.
• C) lost business because of adverse television publicity.
• D) equipment to prevent environmental damage.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving predefined interest payments and return of principal at maturity.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide an equity stake to investors.

Equity Method

An accounting technique used to record investments in associate companies, recognizing the investor's share of the earnings as income.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.