ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation
Which of the following is the best description of a public sector organisation?
A public sector organisation is one owned or controlled by central or local government and set up to provide services to the public, such as health or education. Private shareholder ownership describes the private sector, and volunteer-run bodies reinvesting surpluses describe not-for-profit organisations.
- AAn organisation owned by private shareholders and run to maximise their returns
- BAn organisation owned or controlled by central or local government to provide services to the publicCorrect
- CAn organisation run by volunteers whose surpluses are reinvested in a social cause
Explanation
Public sector organisations are owned or controlled by government, at national or local level, and usually exist to provide services such as health, education or defence. The first option describes a private sector company and the third describes a not-for-profit organisation such as a charity.
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