The Framers of the Constitution Intended to Create a Presidency

question 30

Multiple Choice

The framers of the Constitution intended to create a presidency capable of:

• A) completely dominating Congress
• B) withstanding excessive popular pressure by making it subject to indirect election through the electoral college
• C) spending money with little interference from any other branch of government
• D) regulating all forms of commerce
• E) declaring war on any country that posed a threat to American national security

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Definitions:

MM Proposition

Refers to the Modigliani-Miller theorem, which posits that under certain market conditions the value of a company is unaffected by how it is financed, whether through debt or equity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, representing how a firm finances its overall operations and growth.

Miller's Theory

Miller's Theory, part of the Modigliani-Miller theorem, posits that in perfect markets, the value of a company is unaffected by how it is financed, regardless of whether it's through debt or equity.

MM Propositions

The Modigliani-Miller propositions, fundamental theories in corporate finance that suggest, under certain conditions, the value of a firm is unaffected by its capital structure.