What Are the Broad Classifications of Funds for a Governmental

question 76

Multiple Choice

What are the broad classifications of funds for a governmental entity such as a city?

• A) General, governmental, and trust funds.
• B) Governmental, proprietary, and fiduciary funds.
• C) Revenue, trust, and governmental funds.
• D) Enterprise, revenue, and fiduciary funds.
• E) Governmental, agency, and enterprise funds.

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Definitions:

Entrepreneurs

Individuals who create, organize, and manage a new business venture, taking on greater than normal financial risks in order to do so.

Landlords

Property owners who rent out their real estate assets to tenants in exchange for periodic payments.

Purely Competitive Economy

An idealized market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.

Economic Profit

Sales minus explicit costs and implicit costs.