Which term refers to a financial contribution that provides no rights or benefits to the giver?

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 term that refers to a financial contribution that provides no rights or benefits to the giver is a donation. Donations are typically made voluntarily and without expecting anything in return, distinguishing them from other financial contributions where the giver may expect financial returns, benefits, or rights, such as in the case of investments or subsidies.

A grant, while also potentially not requiring repayment, may come with specific conditions or benefits that pertain to the givers, such as reporting requirements or intended use of the funds, which can create obligations for the grant recipient. A subsidy generally involves a financial aid provided by the government to assist a particular industry or sector, and it often comes with expectations for the use of the funds. An investment implies an expectation of returns, ownership rights, or control over the asset in question. Hence, the defining feature that sets a donation apart is its unconditional nature, making it the correct answer in this context.

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