Which of the Following Is Not a Reason for Forming

question 45

Multiple Choice

Which of the following is not a reason for forming a PAC?

• A) Candidates are more likely to notice a substantial contribution from a PAC than numerous small contributions from individuals.
• B) Lobbyists who deliver substantial PAC money to a candidate can more likely gain access to that candidate.
• C) A PAC is a way for an interest group to send a message to a candidate that it is willing to back with money.
• D) A PAC can serve as a middleman to provide money to candidates that the PAC's members do not want to support publicly.
• E) A PAC is allowed to donate unlimited amounts of money directly to a particular candidate.

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Grow the Dividend

A strategy aimed at gradually increasing the dividend payout to shareholders over time, demonstrating financial health and confidence in future earnings.

Current Price

The current trading price of a security, commodity, or index in the market.

Constant Rate

A fixed percentage rate applied consistently over a period of time, often used in the context of growth rates, discount rates, or interest rates.