The Institutional Theory for Explaining the Persistence of the Two-Party

question 53

Multiple Choice

The institutional theory for explaining the persistence of the two-party system in America takes into account

• A)the fact that the two parties have each become societal landmarks.
• B)the limited ability of voters to focus on more than two parties.
• C)the American media's focus on only the two dominant parties.
• D)America's heavy reliance on single-member districts for elections.
• E)that the two major parties are established by the Constitution.

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Definitions:

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains unchanged.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing company.

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends.