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

---

Definitions:

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.

Present Valued Dollar

The current value of a future sum of money or stream of cash flows given a specified rate of return.