CIMA Exam CIMAPRA19-F03-1 Topic 5 Question 110 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 110
Topic #: 5

HospitalXprovides free healthcare to all members of the community, funded by the central Government.

HospitalYprovides healthcare which has to be paid for by the individual patients. It is a listed company, owned by a large number of shareholders.

In comparing the above two organisations and their objectives, which THREE of the following statements are correct?

AX is a not-for-profit organisation while Y is a for-profit organisation.

BX and Y have the same primary financialobjective - to maximise shareholder wealth.

CThe performance of X will be appraised primarily on the basis of value for money.

DOnly Y islikely to have a mixture of financial and non-financial objectives.

EX and Y will have the same primary non financialobjective - provision of quality of health care.

Show Suggested Answer

Suggested Answer: E

by Broderick at May 04, 2025, 06:20 AM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

7 days ago

B is clearly wrong. X and Y have completely different objectives - X is focused on providing free healthcare, while Y is a for-profit company.

upvoted 0 times

...

12 days ago

I agree with that. Statement C is also correct because X's performance will be based on value for money.

upvoted 0 times

...

13 days ago

I think statement A is correct because X is not-for-profit and Y is for-profit.

upvoted 0 times

...

14 days ago

A and C are definitely correct. X is a not-for-profit funded by the government, so its performance will be assessed on value for money.

upvoted 0 times

...