What Distinguishes a Ballot Initiative from a Referendum

question 9

Multiple Choice

What distinguishes a ballot initiative from a referendum?

• A) Nothing; the terms are interchangeable.
• B) Private citizens or organizations finance a ballot initiative; the state finances a referendum.
• C) A referendum is used to consider constitutional questions; a ballot initiative is used for ordinary legislation.
• D) A ballot initiative is used to consider changes to federal law; a referendum is used to consider changes in state law.
• E) A referendum considers legislation proposed by a legislature; a ballot initiative considers legislation proposed by citizens.

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Definitions:

NPV

Net Present Value; a calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time.

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and the point at which a business, product, or service becomes profitable.

Net Present Value

A calculation used to determine the present value of a series of future cash flows by discounting them at a specific rate.

Initial Cash Outlay

The initial amount of money spent to make an investment or start a project, not counting ongoing expenses.