Which of the Following Statements Is True About Government Corporations

question 25

Multiple Choice

Which of the following statements is true about government corporations?

• A) Profits from government corporations are distributed as dividends.
• B) Government corporations must pay taxes on profits.
• C) Government corporations do not employee many people.
• D) You can invest in both a private corporation and a government corporation.
• E) Government corporations do not usually have any stockholders.

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Definitions:

Financial Crisis

A significant disruption in the flow of funds from lenders to borrowers, often characterized by a sharp decline in asset prices and the insolvency of financial institutions, leading to economic recession.

Interest Rate

The rate at which interest is paid by borrowers for the money that they borrow.

Preference for Liquidity

The desire to hold cash or easy-to-liquidate assets, often due to uncertainty or expectation of needing immediate funds.

Money Supply

The collective amount of currency and currency equivalents within an economy at a designated snapshot in time, including cash, coin forms, and savings and checking account deposits.