Which of the Following Is a Reason Why the Private

question 19

Multiple Choice

Which of the following is a reason why the private prison industry will continue to play an important role in American corrections?

• A) A number of studies have found that private prisons are more cost-effective than public ones.
• B) As private prisons do not have a profit motive, they have no incentive to buy goods and services.
• C) Private corrections firms are part of the government bureaucracy and help government organizations deal with the massive amount of paperwork related to prison administration.
• D) The federal government contracts with private facilities to house about two-thirds of the undocumented immigrants taken into custody by U.S. Immigration and Customs Enforcement.

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Definitions:

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Held to Maturity

A classification of debt securities that a company intends and is able to hold until they mature.

Market Price

The current price at which an asset or service can be bought or sold.

Journal Entries

Records of financial transactions in the accounting system, showing the accounts affected and the amounts for each transaction.