ExpertEasy1 markMultiple Choice
Syllabus A: The business organisation and its external environmentSyllabus APublic SectorOrganizational Objectives
ACCA · Question 31 · Syllabus A: The business organisation and its external environment
[Section A] True or False: The primary overarching objective of a public sector organization (such as a government health department) is the maximization of shareholder wealth.
[Section A] True or False: The primary overarching objective of a public sector organization (such as a government health department) is the maximization of shareholder wealth.
Answer options:
A.
True
B.
False
How to approach this question
Consider who owns a public sector organization and what its goals are.
Full Answer
B.False✓ Correct
Public sector organizations are funded by taxpayers and exist to provide public services (like healthcare, education, or defense). Their primary goal is service delivery and 'value for money' (economy, efficiency, effectiveness), whereas private sector commercial companies aim to maximize shareholder wealth.
Common mistakes
Confusing public sector (government) with public limited companies (PLCs, which are private sector but traded on public stock exchanges).
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