The Device by Which a Corporation May Contribute Money to a Political

question 9

Multiple Choice

The device by which a corporation may contribute money to a political candidate is

• A) through a political action committee.
• B) directly through the union that represents its workers.
• C) directly from the corporation's funds.
• D) through a special state tax transfer fund.

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, calculated as contribution margin divided by sales.

Net Operating Income

The profit of a business after operating expenses are subtracted from gross income.

Break-even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net profit or loss.

Break-even Point

The level of production or sales at which the revenues of a business equal its costs, resulting in neither profit nor loss.