College American Political Process Practice Test

PACs are political action committees created to raise and spend money to influence elections. Groups that have a direct interest in policy—such as businesses, labor unions, and trade associations—can set up these committees to channel contributions from their members or employees into campaigns. Because each of these categories can establish a PAC, the correct idea is that all of these choices are true. It helps to keep in mind there are other types of PACs as well—like nonconnected PACs and so-called super PACs—but the fundamental point here is that businesses, labor unions, and trade associations all can create PACs.