Lacking in the Original Legislation, What Was the Most Important

question 16

Multiple Choice

Lacking in the original legislation, what was the most important provision in the 1974 amendments to the Federal Election Campaign Act?

• A) a voluntary tax return check-off for qualified presidential candidates
• B) limits on campaign expenditures
• C) creation of an enforcement mechanism
• D) limits on campaign finances
• E) public financing for all candidates

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.

Stock Dividends

Distribution of additional shares of the company's stock to shareholders instead of cash dividends.

Retained Earnings

The cumulative amount of net income left over for a company after it has paid out dividends to its shareholders, often reinvested into the company.