Ace the 2025 CGFM Exam – Turbocharge Your Path to Financial Mastery!

Question: 1 / 875

Which of the following is NOT a requirement for a special purpose government to be considered a primary government?

Legally separate

Fiscally independent

Has a population over 50,000

To determine whether a special-purpose government qualifies as a primary government, certain criteria must be met, while the population size is not one of those necessary factors.

A special-purpose government is categorized as a primary government if it is legally separate from other governments, has a governing body that is elected independently, and operates with fiscal independence, meaning it has the authority to set its own budgets and taxes.

The requirement regarding population size is irrelevant to the classification as a primary government. Therefore, having a population over 50,000 does not impact its status as a primary government, making it the correct choice as the option that does not meet the criteria.

In summary, a special-purpose government must be legally separate, have a governing body that is elected by the public, and enjoy fiscal independence, but there is no stipulation regarding the size of its population for it to be considered a primary government.

Get further explanation with Examzify DeepDiveBeta

Has a separately elected governing body

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy