Explain the legislative, executive, and judicial powers delegated to administrative agencies through enabling legislation
What will be an ideal response?
The U.S. Congress creates federal administrative agencies through statutes called enabling legislation. In general, an enabling statute delegates to the agency congressional legislative power for the purpose of serving the "public interest, convenience, and necessity." Armed with this mandate, the administrative agency can issue rules that control individual and business behavior. In many instances, such rules carry criminal as well as civil penalties. The enabling statute also delegates executive power to the agency to investigate potential violations of rules or statutes. Finally, the enabling statutes delegate judicial power to the agency to settle or adjudicate any disputes it may have with businesses or individuals. For example, the Securities and Exchange Commission (SEC), using its congressional mandate under the 1933 and 1934 Securities Acts, has prescribed rules governing the issuance of, and trading in, securities by businesses as well as by brokers and underwriters. Administrative law judges assigned to the SEC adjudicate cases in which individuals or corporations may have violated the rules.
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On December 31, 2009, Voss Corporation had 150,000 shares of common stock issued and outstanding. On October 1, 2010, an additional 20,000 shares of common stock were issued for cash. During 2010, Voss declared and paid dividends of $100,000 on its 10,000 shares of nonconvertible preferred stock. During 2010, Voss declared and paid dividends of $80,000 on its common stock. Net income for 2010
amounted to $500,000 . The earnings per share of common stock (rounded to the nearest cent) for 2010 are a. $1.88. b. $2.06. c. $2.58. d. $3.23.
The underwriting process begins with the
A) agent. B) desk underwriter. C) inspection report. D) actuary.
In regard to a promissory note, the person obligated to pay is the
a. payor. b. promissor. c. bank. d. maker.
Using modeling for decision support can currently achieve all of the following EXCEPT
A) enhance the decision making process. B) enable organizations to see likely results of their decisions. C) replace strategy formulation at top levels of the organization. D) reduce the costs of providing services to customers.