An Example of a Contingent Environmental Cost Is

question 60

Multiple Choice

An example of a contingent environmental cost is:

• A) provisions for 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:

Capital Budgeting

The process that a business uses to evaluate potential major investment or expenditure projects, using various techniques to determine their value.

Working Capital Management

The supervision of a company's short-term assets and liabilities to ensure its efficient operation and financial stability.

Credit Management

The process of granting credit, setting the terms it's granted on, recovering this credit when it's due, and ensuring compliance with company credit policy.

Borrowing

The act of obtaining funds from another party with the promise of repayment at a later date, often with interest.