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An agency of the government that can, in theory, make a profit, is a(n)

A) Government Corporation
B) Regulatory Agency
C) Executive Department
D) Independent Agency

1 Answer

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Final answer:

A Government Corporation is an agency of the government that can, in theory, make a profit. These corporations provide services subject to market forces and are designed to be self-sustaining, with profits reinvested into the enterprise.

Step-by-step explanation:

An agency of the government that can, in theory, make a profit, is a Government Corporation. Government corporations are agencies formed by the federal government to administer a quasi-business enterprise. They are unique because they provide services that are partly subject to market forces and are designed to generate enough profit to be self-sustaining, yet they also fulfill vital services that the government wants to maintain. Unlike private corporations, government corporations do not have stockholders but are managed by a board of directors, and any profits made are reinvested back into the enterprise instead of being distributed as dividends.

Regulatory agencies, independent executive agencies, and executive departments have different functions. Regulatory agencies like the Securities and Exchange Commission (SEC) oversee particular aspects of the economy or public safety, independent of direct political influence. Independent executive agencies like NASA are created by Congress to manage specific tasks that are not part of specific departments. Lastly, executive departments, such as the Department of Education, provide essential government services but are not designed to operate like a business or make a profit.

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