Which of the following is considered a source of government revenue?

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!

Tax assessments are considered a primary source of government revenue because they are mandatory payments required from individuals and businesses to fund government operations, programs, and services. This includes various forms of taxes such as income tax, property tax, sales tax, and corporate tax. These taxes are collected by government entities at various levels (federal, state, and local) and represent a significant portion of overall governmental income, which is essential for maintaining public services like education, infrastructure, law enforcement, and social programs.

In contrast, private donations, real estate investments, and corporate sponsorships can provide additional funding but are not considered standard or guaranteed sources of revenue. Donations rely on voluntary contributions, real estate investments depend on market conditions and may not consistently generate revenue, and corporate sponsorships are typically negotiated agreements that might not be a sustainable or predictable funding source for government budgets. Therefore, while they may complement government financing, they do not serve as foundational revenue sources in the same way that tax assessments do.

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