A Governmental Unit Establishes a Central Motor Pool to Provide

question 1

Multiple Choice

A governmental unit establishes a central motor pool to provide service to governmental departments and agencies.The pricing objective of the central motor pool is to break-even by charging all agencies a user fee.What type of fund should be established for this activity?

• A)Special Revenue Fund
• B)Agency Fund
• C)Permanent Fund
• D)Internal Service Fund

---

Definitions:

Exempt Property

Assets that are protected by law from being seized by creditors or during bankruptcy proceedings.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make payments.

Creditor

An individual or organization to whom money is owed by a debtor.

Co-Sign

To sign a legal document alongside another person, often agreeing to take responsibility if the primary signer fails to meet the terms.