What is the primary function of government corporations?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

The primary function of government corporations is to support businesslike functions with self-generated revenues. Government corporations are established to operate in a manner similar to private businesses, yet they are owned and operated by the government. This allows them to provide specific services or products while aiming to generate income through their operations. Unlike typical government agencies, which are primarily funded through appropriations from the government, government corporations have the capability to earn revenue from the services they provide or the products they sell.

This business-oriented approach enables government corporations to remain financially viable while fulfilling public objectives, such as providing essential services or managing facilities needed by the community. Examples of government corporations include the United States Postal Service and Amtrak, both of which provide services that require a business-like operation to sustain themselves financially.

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