In the Wake of the Supreme Court's Decision in Citizens

question 21

Multiple Choice

In the wake of the Supreme Court's decision in Citizens United, ______ are allowed to spend unlimited amounts during a political campaign as long as the spending is not coordinated with that campaign.

• A)individual citizens
• B)super PACs
• C)finance committees
• D)campaign managers

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Definitions:

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.

Acquisition

The process of acquiring control of another company by purchasing its shares or assets.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting its liquidity.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.