Which of the Following Properly Assesses the Significance of the Passage

question 46

Multiple Choice

Which of the following properly assesses the significance of the passage of the Sherman Antitrust Act in 1890?

• A) The passage of the law was a Republican triumph in an era of Democratic dominance.
• B) The law triggered an avalanche of frivolous lawsuits that would tarnish the reputation of anti-monopolists for years.
• C) The law was so finely grained and complicated that few prosecutors in the country dared to apply it.
• D) The law established a precedent that the national government could regulate the economy in the interest of the public good.

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Definitions:

Rent Expense

The cost incurred by a business for leasing a property or equipment for operational purposes.

Income Summary

An account used in the closing process that summarizes the results of all revenue and expense accounts.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.

Withdrawal Account

An account from which funds can be withdrawn by the account holder; in the context of business partnerships, it refers to an account used by an owner or partner to draw funds from the business.