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:

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted to cash in the short term.

Accounting Period

A specific duration of time for which financial statements are prepared, often a fiscal quarter or year, used to measure financial performance.

Short-Term Lease

A lease agreement with a duration, typically less than a year, used for temporary asset usage.

Fixed Asset

A long-term tangible piece of property that a firm owns and uses in its operations to generate income.