Which of the Following Lends Support to the Capture Theory

question 153

Multiple Choice

Which of the following lends support to the capture theory of regulation?

• A)Persons who have been in the industry will be asked to help regulate the industry.
• B)There will be more people from the regulated industry at a regulatory hearing than people from the general public.
• C)It is in the best interest of an industry that is being regulated to have its personnel develop social relationships with members of the regulatory agency.
• D)all of the above

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Definitions:

Future Value

The worth of an investment or cash flow at a specified future date, based on an assumed rate of growth over time.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Resource

In finance, a resource refers to any financial asset or input that can contribute to a firm's ability to create goods, services, or further financial gains.

Annuity

A financial instrument that provides a consistent series of payments to a person, often employed as a component of a retirement plan.