The Legitimacy of a Government Exists When

question 59

Multiple Choice

The legitimacy of a government exists when:

• A) It has a written constitution
• B) It can make its citizens pay taxes
• C) It represents the best interests of those who are informed
• D) The people accept its right to pass and enforce laws

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.

Total Liabilities

The combined amount of a company's short-term and long-term debts, representing claims against the company's assets by outsiders.

Stockholders' Equity

The value remaining in a company after liabilities are subtracted from assets, representing what is owned by the shareholders.

Debt-to-Equity Ratio

This ratio demonstrates the balance between debt and equity shareholders' equity in financing a company's resources.