James Madison's Size Principle Was Based on the Premise That

question 14

Multiple Choice

James Madison's size principle was based on the premise that

• A) the new nation of 13 states would be small so that the majority would rule.
• B) the new nation of 13 states would be large and diverse so that majority interests would be unlikely to organize and dominate public policy making.
• C) the new nation of 13 states would be unlikely to expand in size and scope.
• D) a strong president would be able to control Congress the majority of the time.

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Definitions:

Capital Budgeting

The strategy of investigating and selecting long-term investments that correspond with the pursuit of amplifying shareholder wealth.

Incremental Sales

Additional sales generated by a new action or decision, beyond what would have been sold without it.

Cash Operating Expenses

Expenses that a company pays out in cash during the operating cycle, excluding non-cash expenses like depreciation.

One-Time Expense

An uncommon or non-recurring charge that companies incur, which does not reflect regular operating activities.