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CIPS L3M1 Exam - Topic 1 Question 39 Discussion

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

CIPS L3M1 Exam - Topic 1 Question 39 Discussion

Actual exam question for CIPS's L3M1 exam
Question #: 39
Topic #: 1
[All L3M1 Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: B

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.


by Carissa at Aug 13, 2025, 04:28 PM

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Emilio
7 months ago
Long-term bank loans (C) are more for private sectors, right?
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Jose
7 months ago
Wait, are we sure it's not A? Sales revenues can be significant too.
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Stephen
7 months ago
Delaying payments? That can't be a legit source, can it?
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Remona
7 months ago
I agree, B is the right choice.
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Tarra
8 months ago
Definitely B, taxpayers are the main source!
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Gwenn
8 months ago
I’m leaning towards B as well. It aligns with what we discussed in class about funding for public services coming from taxpayers.
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Christene
8 months ago
I’m not really sure about this one. I feel like delaying payments could be a strategy, but it doesn’t seem like a main source of finance.
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Amos
8 months ago
I remember a practice question that mentioned sales revenues for public entities, but it seems like that’s not their primary source.
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Vinnie
9 months ago
I think the answer might be B, taxpayers, since public sector entities rely heavily on tax revenue.
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Jamal
9 months ago
Okay, let me see here. Public sector entities... that means government, right? So the main source of their funding would be B - Taxpayers, not sales, loans, or delayed payments. I'm feeling good about that answer.
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Raina
9 months ago
This seems like a straightforward question about public sector finance. I'm pretty confident the answer is B - Taxpayers. That's the main source of funding for government entities.
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Fallon
9 months ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully. The options seem pretty straightforward, but I want to make sure I understand the context before selecting an answer.
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Essie
9 months ago
I think the answer is B - Taxpayers. Public sector entities like government agencies are primarily funded through tax revenue rather than sales or loans.
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Aleshia
10 months ago
I agree with Rosio, public sector entities mainly rely on taxpayers for finance.
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Rosio
11 months ago
I think the answer is B) Taxpayers.
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