Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is a defining feature of the public sector?

Operated for profit
Owned by private individuals
Run by government agencies
Market-driven organizations

The correct answer is: Run by government agencies

A defining feature of the public sector is that it is run by government agencies. The primary role of public sector organizations is to provide services to the public and manage resources on behalf of the state rather than for individual profit. These organizations are funded primarily through taxation and are accountable to the citizens. In contrast, the other options represent characteristics of different sectors. For example, organizations that are operated for profit are characteristic of the private sector, where the focus is on generating profit for owners or shareholders. Ownership by private individuals also pertains to the private sector, emphasizing personal financial gain. Finally, market-driven organizations typically refer to entities that operate within a competitive market environment, influenced by supply and demand, which is a defining feature of the private sector rather than the public.