In a Proportional Representation Electoral System

question 46

Multiple Choice

In a proportional representation electoral system

• A)seats in the legislature are allocated to political parties based on their share of the total vote cast in the election.
• B)each political party receives an equal number of seats in the legislature.
• C)every candidate that receives above a certain percentage of the vote (usually set at 20 percent) is awarded a seat in the legislature.
• D)candidates can only win elections if they receive a majority of the overall votes.

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Definitions:

Net Present Value

Net present value is a financial metric that calculates the present value of all cash flows associated with a project, including both inflows and outflows, to determine its profitability.

Time Value of Money

The notion that money’s worth is greater in the present than an equivalent sum in the future, attributed to its earning potential.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Accounting Rate of Return

This measures the return on investment by dividing the average annual profit by the initial investment cost, often used for evaluating the profitability of potential investments.