Which of the following statements about governments is true?

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 statement that governments are established through legal means is accurate because governments originate from a system of laws and regulations that outline their authority and structure. Constitutions, legislation, and established legal frameworks provide the foundation for governance, ensuring that the powers and responsibilities of government entities are defined and limited. This legal underpinning is crucial, as it helps maintain order, protects rights, and provides a basis for accountability.

In contrast, the other options do not accurately reflect the nature of government. Governments do not function with the primary aim of making a profit; instead, their purpose is to provide services and regulate society for the public good. While some may receive donations, the primary source of governmental revenue is taxes and other compulsory monetary contributions, not donations. Moreover, governments are generally required to adhere to regulations, both in their operations and in how they govern, to ensure transparency, accountability, and the rule of law.

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