Three Sets of Actors Interact to Produce Policy: Congressional Committees

question 1

Multiple Choice

Three sets of actors interact to produce policy: congressional committees, executive agencies of government, and private interest groups. This grouping of actors and interests is referred to as the ____________________.

• A) impenetrable alliance
• B) congressional bond
• C) divine design
• D) iron triangle
• E) American brotherhood

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Definitions:

Liability

A financial obligation or debt that an individual or company owes to another entity, which must be settled over time.

Long-term Debt

Borrowings or financial obligations that are due to be repaid over a period longer than one year.

Pro Forma Financial Statements

Financial statements based on hypothetical scenarios or assumptions about the future of a business.

Spontaneously Generated Funds

Funds generated if a liability account increases spontaneously (automatically) as sales increase. An increase in a liability account is a source of funds; thus, funds have been generated. Two examples of spontaneous liability accounts are accounts payable and accrued wages. Note that notes payable, although a current liability account, is not a spontaneous source of funds since an increase in notes payable requires a specific action between the firm and a creditor.