What Was the Primary Problem with Private Charities Before the Development

question 40

Multiple Choice

What was the primary problem with private charities before the development of the welfare state?

• A) They would make subjective decisions on who was deserving or undeserving of aid.
• B) They were unable to get the necessary government licenses to operate legally.
• C) They disrupted the constitutional separation of church and state.
• D) They often kept donations for their own private use.
• E) There were too many of them.

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Definitions:

Corporate Form

A legal structure for organizing a business as a separate legal entity, which can own property, enter into contracts, sue and be sued, distinct from its owners (shareholders).

Sole Proprietorships

Sole proprietorships are businesses owned and operated by one person, where there is no legal distinction between the owner and the business entity.

Business Organization

A legal entity formed to carry out commercial or industrial enterprises by engaging in trading, manufacturing, or providing services.

Financial Manager

A professional responsible for managing the financial health of an organization by overseeing investment activities and planning for the long-term financial strategy.