Which of the Following Is a Valid Reason for Governments

question 3

Multiple Choice

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

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

---

Definitions:

Limited Liability Companies

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Wyoming

A state in the western United States known for its wide-open spaces, mountains, and natural beauty, as well as being the least populous state.

Members

Individuals who are part of a group, organization, or body with specific roles, rights, or duties.

S Corporations

A type of corporation in the United States that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits through to shareholders for federal tax purposes.