In the Case of Wabash, St

question 138

Multiple Choice

In the case of Wabash, St. Louis, and Pacific Railroad Company v. Illinois, the U.S. Supreme Court held that state legislatures could not regulate railroads because

• A) the U.S. Constitution did not permit the government to regulate private industry.
• B) the state legislatures were acting on behalf of a private interest, Illinois farmers.
• C) the state legislatures had provided the railroad company with state regulatory exemptions when land grant legislation was enacted to help create the railroad.
• D) railroad executives had committed no illegal acts in their business.
• E) railroads were interstate businesses and could not be regulated by any single state.

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Definitions:

Indirect Expense

refers to expenses that are not directly associated with the production of goods or services, such as utility costs, rent, and administration salaries.

Gross Profit

The difference between revenue and the cost of goods sold, representing the basic profitability of a company's products or services.

Sports Apparel

Clothing and accessories designed for sports and physical activities.

Depreciation

The allocation (spreading) of the cost of an asset (such as an auto or equipment) over its expected useful life.