One Effect of the High Cost of Campaigns in Texas

question 27

Multiple Choice

One effect of the high cost of campaigns in Texas is that

• A) parties become more important in organizing and funding candidates.
• B) candidates are often very wealthy individuals willing to use their own money in campaigns.
• C) sometimes there is no one willing to run for major statewide office.
• D) candidates increasingly turn to illegal sources of funds.
• E) candidates drop out of high-profile races when the money dries up.

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Definitions:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock which must be paid out before any dividends can be distributed to common stockholders.

Dividends Payable

A liability on a company's balance sheet representing the amount owed to shareholders in the form of dividends that have been declared but not yet paid.

Cumulative

Referring to the aggregate or total amount accumulated over a period of time, often used in the context of dividends or records.

Preferred Stockholders

Investors who own preferred shares in a company, having priority over common stockholders in receiving dividends and assets upon liquidation.