The city created a legally separate port authority. Members of the board of the port authority are elected in general city elections. The port authority receives no tax dollars; it is supported entirely by user fees. The port authority determines its budget, sets user fees, and has the power to issue bonded debt. The authority would be considered a(n)
A) Primary government.
B) Component unit.
C) Related organization.
D) Affiliated organization.

Question

Quizplus · Accepted Answer

The port authority is considered a primary government because it is a legally separate entity that has its own elected governing body, is financially independent, and has the power to determine its budget, set fees, and issue bonded debt.

The City Created a Legally Separate Port Authority