If in the process of maximizing its performance, a firm engages in activities that pollute the environment, the impact of that pollution is a(n)
A) capability.
B) externality.
C) competitive advantage.
D) weakness.

Question

Quizplus · Accepted Answer

The impact of pollution caused by a firm's activities is considered an externality because it is an unintended consequence that affects parties outside of the firm. It is not a capability or competitive advantage, and while it may be a weakness in terms of ethical or environmental responsibility, that is not the most accurate answer choice.

If in the Process of Maximizing Its Performance, a Firm