Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a primary purpose of an organization?

1. To achieve personal enrichment

2. To satisfy social needs collaboratively

3. To operate independently without coordination

4. To compete against other firms aggressively

The correct answer is: To satisfy social needs collaboratively

The primary purpose of an organization is to satisfy social needs collaboratively. Organizations often come together to address specific needs or issues within society, whether it be through providing goods, services, or support. This collaborative approach means that organizations leverage the strengths and resources of individuals working together to achieve common goals that benefit their stakeholders and, often, the wider community. Unlike the other options, which focus on individual gain, isolation, or aggressive competition, the collaborative aspect of fulfilling social needs is fundamental to the existence and operation of many organizations, particularly non-profits, social enterprises, and community-focused businesses. The emphasis on collaboration highlights the importance of teamwork in achieving results that go beyond mere profit, focusing instead on the positive impact an organization can have on society. This aligns with the broader goals of many modern organizations that prioritize corporate social responsibility and community engagement alongside their operational objectives.