Which of the Following Is True

question 99

Multiple Choice

Which of the following is true?

• A) To remain in office, a politician must try to enact policies that gain him votes for his reelection and increase the support coming from contributors.
• B) A politician always attempts to pursue policies that are good for society even if they are strongly opposed by many of her constituents or contributors.
• C) Politicians generally place more weight on how their decisions affect future costs and benefits than on how they affect present costs and benefits.
• D) The value of being in office is so low that most political candidates spend very little on campaigns to try to win (or keep) elected office.

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Definitions:

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, not considered when calculating earnings per share or dividend distributions.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and a right to vote on shareholder matters.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the company. These shares do not pay dividends and do not have voting rights.