CIPS Exam L3M1 Topic 2 Question 7 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 7
Topic #: 2

[All L3M1 Questions]

Which of the following might be objectives of private sector organisations? Select all that apply.

ATo maximise taxation

BTo minimise profit

CShareholder value

DMarket share

Show Suggested Answer

Suggested Answer: C, D

To gain market share and to create shareholder value (increase the value of shares) are common aims of private sector organisations.

The other two answers are the antithesis of what firms usually want.

by Andra at Apr 10, 2024, 04:58 AM

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Valentine

11 days ago

Yeah, this question is just trying to trip us up. Gotta stay focused on the real business objectives here - shareholder returns and market dominance. Don't fall for those trick answers!

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Lajuana

13 days ago

Agreed, the correct answers are C and D. Although, I have to say, 'to maximise taxation' is a pretty creative option. Sounds like something the government would want, not a private company!

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Coleen

14 days ago

Haha, 'to minimise profit'? What kind of organization would want that? Maybe a charity, but definitely not a private sector business. This exam is really testing our common sense here.

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Francis

15 days ago

Yep, those are the obvious ones. Businesses want to maximize profits and grow their market share. Minimizing profit? That's just nonsensical.

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Mari

17 days ago

I agree, 'to maximise taxation' is just ridiculous. That has to be a trick answer. The real objectives are clearly C) Shareholder value and D) Market share.

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Serina

19 days ago

Maximising taxation? Really? That's definitely not an objective of any private sector organization I know of. This question seems a bit off-base.

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