Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Governments exist primarily to provide services to their citizens without the profit motive that characterizes private-sector enterprises. This perspective highlights the role of government in addressing public needs that might not be sufficiently met by private entities due to the absence of immediate financial gains.

For instance, essential services such as education, public safety, infrastructure, and healthcare are often funded and provided by the government to ensure equitable access for all members of society, not just those who can afford to pay. The aim is to enhance social welfare and address issues of equity and access that the marketplace may overlook.

Options that focus on profit maximization, competition with private sectors, or heavy regulation of industries overlook the fundamental role of government as a provider of fundamental services aimed at the public good rather than generating profit or competing with other sectors. These concepts may be aspects of government functions, but they do not capture the core reason for the existence of government as defined by traditional perspectives.