A Measure of the Extent to Which the Government's Business-Type

question 26

Multiple Choice

A measure of the extent to which the government's business-type activities depend on subsidies from taxpayer or other general revenues rather than having the full cost of the activities' operations funded by charges to the users of the service is

• A)Unrestricted net assets/total revenues.
• B)Business-type activities revenues/business-type activities expenses.
• C)Total net assets (governmental activities and business-type activities)less total net assets at the beginning of the year.
• D)Total revenues/total expenses.

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Definitions:

Share Exchange

A process in which some or all of the shares of one corporation are exchanged for some or all of the shares of another corporation, and both corporations continue to exist.

Holding Company

A company whose business activity is holding shares in another company.

Boards of Directors

Governing bodies elected by shareholders to make major decisions regarding a corporation's affairs, including setting strategies and overall management oversight.

Merger

The combination of two or more companies into a single legal entity, typically with the goal of achieving operational synergies or strategic advantages.