The System of Proportional Representation ______

question 76

Multiple Choice

The system of proportional representation ______.

• A) tends to produce more legislative parties, but it has never been tried in the United States on any significant scale
• B) has declined in popularity around the world because having too many legislative parties creates too much uncertainty in government
• C) guarantees that no party will receive a majority
• D) encourages voters to behave strategically by turning to one of the less objectionable major party candidates who has a chance to win

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Definitions:

Stock Dividend

A disbursement from a corporation to its shareholders, using shares as the medium instead of cash.

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by their share of the company's assets after all liabilities have been deducted.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A metric that calculates a company's earnings per share (EPS) if all convertible securities were converted into common stock, often resulting in a lower EPS.