What Is Often the Most Important Triggering Mechanism That Causes

question 5

Multiple Choice

What is often the most important triggering mechanism that causes interest groups to form?

• A) an external threat that causes citizens to band together to protect their well-being
• B) people having a common interest
• C) an interest group entrepreneur paying most of the costs of organizing the group and reaping most of the benefits
• D) the provision of collective goods
• E) a period of economic prosperity

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Definitions:

Stockholders' Equity

The owners' residual interest in a corporation, calculated as the difference between the company's total assets and total liabilities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Redemption Value

The amount that an investment instrument, such as a bond, is worth at its maturity or when it is redeemed.

Stated Value

Arbitrary value placed by the board of directors on each share of no-par stock to fulfill legal capital requirements.