Which of the following statements relating to non-exchange transactions is FALSE?
A)Many of the revenues of government are confiscatory by nature.
B)Governments have the right to tax and do not directly exchange or give up economic resources when they levy taxes, or impose fines and penalties.
C)Rates or charges associated with the services that public sector entities offer are set to maximize the return to shareholders.
D)A public sector entity may be granted the authority to collect fees when granting a non-exclusive right or privilege such as a driver's license.

Question

Quizplus · Accepted Answer

The statement that rates or charges associated with the services that public sector entities offer are set to maximize the return to shareholders is false. Public sector entities do not have shareholders. Instead, they aim to provide services to the general public at a reasonable cost.

Which of the Following Statements Relating to Non-Exchange Transactions Is