Question

How are government corporations similar to independent executive agencies?

A. Both are under the control of cabinet departments.
B. Both are in competition with private businesses.
C. Both are subject to presidential control.
D. Both operate outside of the executive branch.

Answer 1

D. Both operate outside of the executive branch.

Answer 2

The correct answer is D) they are both outside the presidential control.

Government corporations are similar to independent executive agencies in that they are both outside the presidential control.

In the United States, independent executive agencies exit outside the federal executive department. Examples of independent agencies are the Central Intelligence Agency (CIA), the Environmental Protection Agency (EPA), and the Federal Communications Commission.

In the case of Government Corporations, these are legal entities that can run commercial activities for the government. It is something similar to a State-owned Enterprise. Examples of these corporations are the Federal Home Loan Mortage Corporation, National Park Foundation, and the National Cooperative Bank. Government corporations are similar to independent executive agencies in that they are both outside the presidential control.