Local Governments May Exercise Only Those Powers Explicitly Granted to Them

question 26

Multiple Choice

Local governments may exercise only those powers explicitly granted to them by the state. This is an example of

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

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Definitions:

Common Stock

Equity shares representing ownership in a company, granting voting rights and potential dividends.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Initial Value Method

An accounting approach where investments are reported at their acquisition cost without subsequent adjustment for changes in market value.