Which of the following is necessary for a governmental entity to be considered fiscally independent?
A)It must be able to hire its own management.
B)It must be able to issue bonds that are tax-exempt.
C)It must not be subsidized by another governmental entity.
D)It must be able to levy taxes and/or set rates for its services.

Question

Quizplus · Accepted Answer

For a governmental entity to be considered fiscally independent, it must have the power to generate its own revenue through taxes or fees. Being able to hire its own management or issue tax-exempt bonds are not necessary conditions for fiscal independence. Additionally, it should not be subsidized by another entity as it would depend on that entity for its funding.

Which of the Following Is Necessary for a Governmental Entity