Accounting Multiple Choice Question – 31 May 2024

What are the primary objectives of profit-oriented and non-profit oriented organisations?

Select ONE answer:

Profit-oriented organisation Non-profit oriented organisation

1. Output of goods/services Minimise costs
2. Output of goods/services Provision of goods/services
3. Maximisation of wealth Minimise costs
4. Maximisation of wealth Provision of goods/services

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Profit-oriented organisations should aim to maximise shareholder wealth. Non-profit oriented organisations, such as charities, should aim to provide goods and/or services.

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