CIPS Exam L3M1 Topic 2 Question 7 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 7
Topic #: 2

[All L3M1 Questions]

Which of the following might be objectives of private sector organisations? Select all that apply.

ATo maximise taxation

BTo minimise profit

CShareholder value

DMarket share

Show Suggested Answer

Suggested Answer: C, D

To gain market share and to create shareholder value (increase the value of shares) are common aims of private sector organisations.

The other two answers are the antithesis of what firms usually want.

by Andra at Apr 10, 2024, 04:58 AM

Limited Time Offer

25%

Off

Get Premium L3M1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Frederica

10 months ago

I believe minimizing profit would also not be a goal for private sector organizations, as they aim to generate profit.

upvoted 0 times

...

Johna

10 months ago

I think maximizing taxation would not be an objective for private sector organizations.

upvoted 0 times

...

Staci

10 months ago

I agree with Lorita, those two objectives make sense for private sector organizations.

upvoted 0 times

...

Lorita

10 months ago

I think the objectives of private sector organisations might include shareholder value and market share.

upvoted 0 times

...

Alex

11 months ago

Exactly. They are in business to make profit and create value for shareholders.

upvoted 0 times

...

Desmond

11 months ago

Yes, I agree. Minimizing profit also doesn't make sense for private sector organizations.

upvoted 0 times

...

Andra

11 months ago

I believe maximizing taxation is not one of their objectives.

upvoted 0 times

...

Alex

11 months ago

I agree. Shareholder value and market share should be some of their goals.

upvoted 0 times

...

Desmond

11 months ago

I think the objectives of private sector organisations are important.

upvoted 0 times

...

Valentine

1 years ago

Yeah, this question is just trying to trip us up. Gotta stay focused on the real business objectives here - shareholder returns and market dominance. Don't fall for those trick answers!

upvoted 0 times

Jerry

11 months ago

Market share

upvoted 0 times

...

Joesph

11 months ago

Shareholder value

upvoted 0 times

...

Lajuana

1 years ago

Agreed, the correct answers are C and D. Although, I have to say, 'to maximise taxation' is a pretty creative option. Sounds like something the government would want, not a private company!

upvoted 0 times

...

Coleen

1 years ago

Haha, 'to minimise profit'? What kind of organization would want that? Maybe a charity, but definitely not a private sector business. This exam is really testing our common sense here.

upvoted 0 times

...

Francis

1 years ago

Yep, those are the obvious ones. Businesses want to maximize profits and grow their market share. Minimizing profit? That's just nonsensical.

upvoted 0 times

...

Mari

1 years ago

I agree, 'to maximise taxation' is just ridiculous. That has to be a trick answer. The real objectives are clearly C) Shareholder value and D) Market share.

upvoted 0 times

...

Serina

1 years ago

Maximising taxation? Really? That's definitely not an objective of any private sector organization I know of. This question seems a bit off-base.

upvoted 0 times

...