An Externality Can Be Defined As

An externality can be defined as:

A) an impact of an external group or entity on the reporting organisation.
B) an impact that a reporting organisation has on parties that have a direct financial relationship with the organisation.
C) an impact that a reporting organisation has on parties that are external to the organisation; parties that typically have no direct relationship with the organisation.
D) an impact on the organisation that is not of an economic nature and which is caused by environmental protection regulations.