What Is a Government Corporation

question 41

Multiple Choice

What is a government corporation?

• A) Each department in the executive branch is legally registered as a corporation.
• B) It is an agency that performs and charges for services usually provided by the private sector.
• C) It is a private company, publicly traded, whose sole investor is the federal government.
• D) It is a government agency that is charged by Congress to make a profit.
• E) It is a government agency that is run primarily by business executives from the private sector.

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Definitions:

Sales

The revenues earned from selling goods or services over a period of time.

Preferred Stock Dividends

Dividends paid on preferred shares of a company which typically have a fixed dividend rate and priority over common stock in dividend payments.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.