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Practice ACCA ACCA BT — Business & Technology Practice Exam 5Question 31

Easy1 markMultiple Choice

Syllabus A: Business organisation and its external environmentSyllabus AOrganizational Types

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.

Answer options:

True

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).

Question 30 All questions Question 32

Practice the full ACCA BT — Business & Technology Practice Exam 5

52 questions · hints · full answers · grading

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