Why Is the Correlation Between a Group's Financial Resources and Its

question 6

Multiple Choice

Why is the correlation between a group's financial resources and its lobbying success so weak?

• A) Lobbying is a competitive enterprise with big interests often facing off against one another.
• B) Many interest groups do not know how to use their financial resources effectively.
• C) Because elected officials don't want to appear biased, they often vote against their PAC contributors.
• D) Regulations limit how much money an interest group can spend on lobbying.

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Definitions:

Stock Split

A corporate maneuver where a firm expands its existing shares into a greater quantity to increase the shares' liquidity.

Trading Range

The range within which a security’s price fluctuates over a given period, indicating the highest and lowest prices reached.

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.