Running for Public Office Has Become Increasingly Expensive

question 43

Multiple Choice

Running for public office has become increasingly expensive. In an effort to level the playing field and diminish the role of private money, most states

• A) have banned PACs and forbidden direct contributions from corporations, labor unions, and other special interest groups in state elections.
• B) have limited the influence of soft money and PACs because of the U.S. Supreme Court's ruling in Buckley v. Valeo.
• C) now provide public financing for all major elections.
• D) limit contributions and many now provide for public financing.

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Definitions:

Equity Method

A method of accounting that allows an investor to recognize gains and losses through their share of an associate's profits or losses, adjusting the value of their investment accordingly.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.

Entity Theory

A concept in accounting that treats a business as separate from its owners or other businesses, supporting the preparation of separate financial statements.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented in a consolidated financial statement.