What Is Meant by "Administrative Discretion

question 13

Multiple Choice

What is meant by "administrative discretion"?

• A) The federal courts have considerable oversight ability and latitude to steer an agency.
• B) An agency is not bound by its written regulations and may adapt its procedures to meet the particular circumstance.
• C) Having enacted the legislation, Congress has reserved the right to create administrative guidelines for an agency.
• D) When laws are vague, a federal agency usually has considerable freedom in deciding how to implement them.
• E) In regard to a federal agency, the president has considerable freedom to dictate to the agency how a law will be implemented.

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Definitions:

Dividend Distribution

The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.

Retaining Earnings

Profits kept by a company for reinvestment in its operations rather than distributed to shareholders as dividends.

Residual Dividend

A policy whereby dividends are based on earnings after all projects with positive NPV are funded.

Capital Budgeting Projects

Long-term investment decisions made by companies to invest in projects or assets with the aim of generating revenue or reducing costs in the future.