- 2 Marks
Question
Identify any TWO characteristics of a Governmental Business Enterprise.
Answer
The two characteristics of a Government Business Enterprise are:
- Power to Contract in Its Own Name:
A Government Business Enterprise has the legal authority to enter into contracts and other agreements in its own name, independent of the government. - Financial and Operational Authority:
The enterprise is assigned financial and operational control to conduct business activities, with the ability to generate revenue through sales or full-cost recovery.
- Tags: Financial management, Government Business Enterprises, Public Sector
- Level: Level 2
- Topic: Accounting for Government Assets and Liabilities
- Series: NOV 2016
- Uploader: Kwame Aikins