Which of the Following Is a Valid Reason for Governmental

question 40

Multiple Choice

Which of the following is a valid reason for governmental entities to engage in business-type activities?

• A)The entity does not want control over the activity.
• B)The activity competes with general government activities.
• C)The entity does not want to subsidize the activity.
• D)The entity can provide the services more cheaply or efficiently than can a private firm.

---

Definitions:

Market Rate

The current price or cost of a good or service in the marketplace, often used in reference to interest rates or wages.

Contract Rate

The agreed-upon price or rate specified in a contract for services or goods, often locked in for the duration of the agreement.

Issue Price

The price at which securities, such as bonds or shares, are originally sold to the public or investors by the issuing entity.

Installment Note Payable

A debt instrument that requires a series of periodic payments to the lender over a specified period of time.