In a Confederal System

question 38

Multiple Choice

In a confederal system,

• A) local or subdivisional governments exercise only those powers given to them by the central government.
• B) any subnational government is a "creature" of the national government.
• C) sovereign states are joined together by a central government that has only limited powers over them.
• D) there is no central government.
• E) government powers are divided between a central government and regional governments in a system of shared sovereignty.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, used in measuring its financial performance and position.

Competitive Forces

Various external factors that influence the competitive environment of a business, often analyzed using Porter's Five Forces framework.

Selling Price

The amount of money a buyer pays to purchase a product or service.

Revaluation Model

An accounting method that allows for the upward adjustment in the carrying amount of a fixed asset to reflect its current market value.