Why Are Coalitions Among Parties Seldom Necessary in the United

question 27

Multiple Choice

Why are coalitions among parties seldom necessary in the United States?

• A)Because elections are held in multi-member districts
• B)Because elections usually produce more than two viable candidates
• C)Because elections are held in single-member districts with plurality winners
• D)Because of the multi-party system in the United States

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Definitions:

Flotation Costs

The financial outlay a firm encounters when releasing new securities, involving charges for legal matters, underwriting, and registering the issuance.

Issuance

The act of making something available or distributing it officially, commonly used in the context of financial securities being issued to the public.

New Securities

Financial instruments recently issued by a corporation or government entity to raise funds from investors.

Cost of Equity

The theoretical payment a company offers to its shareholders as compensation for the risk they assume by investing their funds.