Public Choice Analysis

question 145

Multiple Choice

Public choice analysis

• A) assumes individuals in the public sector act in their own self-interests.
• B) assumes individuals seek to serve the public interest rather than their own personal interests.
• C) is the study of decision making in the formation and operation of private organizations.
• D) assumes the government is a corrective device that takes the necessary action to offset economic inefficiency arising from market failure.

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Definitions:

Managed by Shareholders

An organizational structure in which the owners (shareholders) of a firm take an active role in the management decisions.

Legal Entity

An organization or business that has legal rights and obligations, including the ability to enter into contracts and sue or be sued.

Sued and to Sue

Refers to the legal capacity of an individual or entity to bring a lawsuit or to be subject to a lawsuit in a court of law.

Defective Incorporation

A situation where errors or omissions occur during the incorporation process of a company, potentially affecting its legal status or liability.