Which of the Following Best Describes How the Major Cabinet

question 71

Multiple Choice

Which of the following best describes how the major cabinet departments of the federal government were created?

• A) Through congressional legislation
• B) When the Constitution was initially ratified
• C) By constitutional amendments
• D) By executive order
• E) Through congressional legislation and by constitutional amendments

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Definitions:

Treasury Stock

Previously issued stock that has been bought back by the issuing company, reducing the amount of outstanding stock in the market.

Additional Paid-in Capital

The amount of money investors pay for shares above the par value during stock issuance, reflecting surplus investor contribution.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost, without recognizing any changes in market value.

Preferred Stockholders

Investors who own preferred shares in a company, with rights to dividends ahead of common stockholders typically without voting rights.