Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In terms of business objectives, a business organization typically aims for what?

1. Maximizing shareholder wealth only

2. A collaborative approach to achieving common goals

3. Focusing on social responsibility exclusively

4. Operating independently of external environments

The correct answer is: A collaborative approach to achieving common goals

A business organization typically aims for a collaborative approach to achieving common goals because this fosters engagement and aligns the interests of various stakeholders, such as employees, customers, and investors. This approach recognizes that for a business to be successful in the long term, it must not only focus on financial metrics but also consider the input and collaboration of all stakeholders involved. Building a culture of collaboration encourages teamwork and innovation, ultimately contributing to achieving broader business objectives, such as sustainability, profitability, and corporate social responsibility. In contrast, focusing solely on maximizing shareholder wealth does not encompass the diverse stakeholder perspectives that a successful organization must consider. Exclusively prioritizing social responsibility overlooks the need for profitability and growth necessary for a sustainable business model. Additionally, operating independently of external environments can lead to a failure to adapt and respond to market changes, competition, and societal expectations, which are crucial for long-term success. Hence, a collaborative approach serves as a more holistic and effective business strategy.