Easy1 markMultiple Choice

ACCA · Question 33 · Syllabus A: The business organisation and its external environment

Section A

Which of the following is typically the primary objective of a public sector organization (e.g., a state-funded healthcare system)?

Answer options:

A.

To maximize shareholder wealth.

B.

To provide services to the public efficiently and equitably.

C.

To eliminate all market competition.

How to approach this question

Contrast public sector (government-funded, service-oriented) with private sector (profit-oriented).

Full Answer

B.To provide services to the public efficiently and equitably.✓ Correct
Public sector organizations are owned and operated by the government. Their primary objective is not to make a profit, but to provide essential services (like healthcare, education, defense) to citizens in an efficient, effective, and equitable manner.

Common mistakes

Assuming public sector entities operate exactly like private businesses.

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