Which of the Following Factors Explains Why Managers of Government

question 135

Multiple Choice

Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?

• A) Public-sector managers have no fear of bankruptcy when operational efficiency is not achieved.
• B) Public-sector managers face fierce competition.
• C) It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it.
• D) All of the above explain why government agencies have little incentive to be efficient.

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Definitions:

Balance Sheet

A financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Chapter 7 Bankruptcy

A process under U.S. bankruptcy law for liquidating a debtor's assets to pay off creditors before the debtor is relieved of their debts.

Note Payable

A written promise to pay a specific amount of money, either on demand or at a set future date, typically used in business to document debt agreements.