Which of the Following Statements Is True of a Special

question 22

Multiple Choice

Which of the following statements is true of a special district?

• A) It includes general-purpose local governments such as counties, cities, and townships.
• B) It is generally concerned with a specific issue such as solid waste disposal, mass transportation, or fire protection.
• C) It usually receives administrative and financial support from the federal government.
• D) It tends to have more restrictions than other local governments as to how much debt it can incur.
• E) It is the least common type of governmental unit in the United States.

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Definitions:

No-Par

Refers to stocks issued without a par value; no minimum value is assigned to these shares.

Corporate Charter

A legal document issued by a government, outlining a corporation's rights, privileges, and purpose.

Issued Stock

Shares of a company that have been allocated and distributed to shareholders.

Preemptive Right

This is a shareholder's right to buy new shares in proportion to their current holdings before the shares are offered to the public, helping to maintain their ownership percentage.