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ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation

Which of the following is most likely to be a primary objective of a public sector organisation such as a state-run hospital service?

The most likely primary objective is providing healthcare of an agreed standard within its budget. Public sector bodies exist to deliver services to the public and are judged on service quality and value for money, whereas return on capital, dividends and market share are commercial aims.

  1. AMaximising return on capital employed
  2. BProviding healthcare of an agreed standard within its budgetCorrect
  3. CMaximising dividends to government
  4. DIncreasing market share against private providers

Explanation

Public sector bodies exist to deliver services to the public, usually constrained by a funded budget, and are judged on value for money and service standards. Return on capital, dividends and market share are profit-oriented aims typical of commercial businesses, not the main purpose of a public healthcare service.

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