Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which type of organization primarily provides government services?

Public sector organizations
Commercial business organizations
Non-governmental organizations
Not-for-profit organizations

The correct answer is: Public sector organizations

Public sector organizations primarily provide government services as they are established and operated by government entities. Their main objective is to serve the public interest and provide a variety of services such as education, healthcare, transportation, and public safety. These organizations are funded through taxpayer money and are accountable to the government and the public. In contrast, commercial business organizations focus on profitability and are driven by the goal of generating revenue for their owners or shareholders. Non-governmental organizations (NGOs) may provide services in the public interest but operate independently from the government and typically rely on donations, grants, and volunteer support. Not-for-profit organizations can also deliver community services but are distinct from public sector entities because they operate without the aim of earning profit; they often depend on funding from various sources, including government grants.