ExpertEasy1 markMultiple Choice
ACCA · Question 31 · Syllabus A: Business organisation and its external environment
True or False: The primary objective of public sector organizations is to maximize shareholder wealth.
True or False: The primary objective of public sector organizations is to maximize shareholder wealth.
Answer options:
A.
True
B.
False
How to approach this question
Consider who owns public sector organizations (the government/public) and why they exist (to provide services like health and education).
Full Answer
B.False✓ Correct
Private sector commercial companies aim to maximize shareholder wealth. Public sector organizations (like government departments, public hospitals) exist to provide services and achieve value for money (Economy, Efficiency, Effectiveness).
Common mistakes
Confusing public sector (government) with public limited companies (PLCs, which are private sector but publicly traded).
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