Which of the Following Characteristics Best Distinguishes a Government Entity

question 26

Multiple Choice

Which of the following characteristics best distinguishes a government entity from a business entity?

• A) Governments operate in a very small section of the economy while businesses operate globally.
• B) Cost analysis and other control and evaluation techniques are essential to ensure that resources are used economically and efficiently.
• C) Those contributing resources to the entity do not necessarily receive a direct or proportionate share the services.
• D) Businesses must acquire and convert scarce resources while governments can demand whatever they need.

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Definitions:

Minimize Losses

Minimizing losses involves strategies or actions taken by individuals or businesses to reduce the amount of money or resources lost.

Mortgage Payment

The regular payment made by a borrower to a lender, typically comprising both interest and principal repayment, for a loan secured by real estate.

Monthly Rent

The periodic payment made by a tenant to a landlord for the use of premises.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, and thus should not affect future decisions.