Why Must Federal Legislation That Affects Business Be Based on an Expressed

question 50

Multiple Choice

Why must federal legislation that affects business be based on an expressed constitutional grant of authority?

• A) Because the U.S. Congress passed a law to that effect.
• B) Because the federal government has only those powers granted to it by the Constitution.
• C) Because the President Lincoln issued an executive order to that effect.
• D) Because President Washington issued an executive order to that effect.
• E) Because it is a custom.

---

Definitions:

Interest Rate

The rate a borrower pays to a lender for using assets, expressed in terms of the principal's percentage.

Borrow

The act of receiving something from someone with the intention of returning it or its equivalent after a period of time.

Monthly Payment

A regularly scheduled payment that is due every month, commonly associated with loans or leases.

Years

Units of time that represent a period of approximately 365 or 366 days, based on the Earth's orbit of the sun.