The Principle of Checks and Balances Is Based on the Notion

question 32

Multiple Choice

The principle of checks and balances is based on the notion that

• A)leaders are the trustees of the people.
• B)a weak government is always preferable to a strong government.
• C)all legislative and executive action should be controlled through judicial power.
• D)power must be used to offset power.
• E)legislators and executives cannot be trusted,but judges are trustworthy.

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Definitions:

Present Value Factor

A numerical figure used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.

Net Present Value Method

A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.