Which of the Following Statements Concerning Third Parties Is FALSE

question 54

Multiple Choice

Which of the following statements concerning third parties is FALSE?

• A) Third parties are often short-lived.
• B) Successful third parties often have their programs adopted by one of the two major parties.
• C) The earliest third parties in the United States arose as a result of the Great Depression.
• D) Third parties almost always lose at the national level.
• E) Under federal election law, any minor party receiving more than 5 percent of the national presidential vote is entitled to federal funds.

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Definitions:

Sales Quantity

The total number of units sold within a specific period.

Discounted Payback Period

The period of time it takes for an investment's cash flows, discounted back to the present value, to cover its initial cost.

Degree of Operating Leverage

A financial metric that measures how a change in sales volume will affect a company's operating income due to fixed and variable costs.

Fixed Costs

Expenses that do not change with varying levels of production or sales, such as rent or salaries.