Which of the Following Statements Summarizes Major Reasons for the Growth

question 26

Multiple Choice

Which of the following statements summarizes major reasons for the growth in government in the past 100 years?

• A) As the U.S. territory and role in the world expanded, public attitudes became accepting of government involvement in many facets of life.
• B) As more and more public officials have been hired through the years, the government has taken on a growing role in many facets of life.
• C) As the need for government welfare programs has grown, taxes have increased and the government has taken on an expanded role in many facets of life.
• D) After the Great Depression, many new government programs were created that, today, have grown to enormous sizes, require huge budgets, and employ many federal employees.

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Definitions:

Accounting Rule-Making Bodies

Organizations or groups responsible for setting standards and regulations in the accounting field, like FASB or IASB.

CAP

An abbreviation often referring to the "Capitalization" of a company, which is the sum of a company's stock, long-term debt, and retained earnings.

FASB

The Financial Accounting Standards Board, a private, non-profit organization standard setter, which establishes the generally accepted accounting principles (GAAP) within the United States.

Agency Theory

A framework that analyzes the relationship and conflicts between principals (owners) and agents (managers) in a corporation, focusing on how to align their interests.