Sources of finance for a public sector entity are primarily (select one):

Sources of finance for a public sector entity are primarily (select one):
A . Sales revenues
B . Taxpayers
C . Long-term bank loans
D . Delaying payments to suppliers

View Answer

Answer: B

Explanation:

The correct answer is ‘taxpayers’. On occasion, part of a public sector organisation may make sales which will generate revenue. In some mega-projects (eg power generation), public sector bodies will sometimes into long-term arrangements with private sector financiers, but this is not the mainstream. Delaying payments to suppliers is a tactic used by some organisations, but they are more likely to be private sector, and such a practice is regarded as unethical by many, including CIPS.