Question

The primary purpose of a fund is (p. 21-22)

A. To provide expenditure authority for a government or not-for-profit organization.
B. To segregate an organization's resources according to the purpose(s) for which they are to be used.
C. To keep an organization's constituency from trying to insist that the organization utilize resources that it wants to save for a specific future objective.
D. To confuse and confound the legislative body as to the use and purpose of government resources.

Answer 1

To segregate an organization's resources according to the purpose(s) for which they are to be used.

Step-by-step explanation:

A fund is a certain amount of money that is set aside for a specific purpose. These types of funds are often invested and managed by professional protfolio managers so that they make gains over time. Example of funds includes pension funds, insurance funds, endowments, and foundations.

For a company formation of funds helps the company segregate their resources so that they can be effectively allocated toeet various business needs.