If a State Expressly Grants a Local Government Authority to Pursue

question 6

Multiple Choice

If a state expressly grants a local government authority to pursue specific public policies, it can also take away that authority. This is an example of

• A)intergovernmental transfer.
• B)Dillon's rule.
• C)Compton's rule.
• D)second-order devolution.

---

Definitions:

Lessee

An individual or entity that leases or rents an asset from its owner, known as the lessor.

Captive Finance Company

Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it completely controlled by the parent company.