What Happened When President Harry Truman Seized Control of Industry

question 22

Multiple Choice

What happened when President Harry Truman seized control of industry during the Korean War?

• A) His action was upheld by the Supreme Court justices as a constitutional exercise of war powers.
• B) Congress passed a bill shortly afterward that retroactively approved the steel mill seizures.
• C) The Supreme Court justices declared that his actions were without basis in law or the Constitution.
• D) Congress immediately passed a bill that legally prohibited the president from seizing the mills, and President Truman quickly rescinded his executive order.

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Definitions:

Price-Earnings Ratio

is a measure of a company's current share price relative to its per-share earnings, used to evaluate if a stock is undervalued or overvalued.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt, calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.

Debt-To-Equity Ratio

A gauge for understanding the proportionate use of debt and equity by shareholders in the funding mechanisms for a company's assets.

Equity Multiplier

A metric indicating the proportion of a firm's assets funded by owner's equity.