Practice Quiz

AP US Government

Category - Gov Institutions

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Which of the following best describes government corporations?
  1. Businesses that have gone bankrupt and have been taken over by the government.
  2. Business enterprises that the government has seized because of failure to pay taxes.
  3. Government agencies that provide services that could be provided by the private sector.
  4. Government partnerships with private industry.
  5. The board of directors for a corporation that is responsible for government oversight.
Explanation
Answer: C - A government corporation is a corporation that provides a service that could be provided by a private company. In other words, a government corporation can be thought of as a corporation that is run by the government, but not-for-profit and presumably at lower cost. The primary examples in the US are the Postal Service and some government-operated utilities.
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