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Which of the following industry sectors can be characterized by a low level of regulation and a high level of focus on cost?
Suggested Answer: A
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According to COBIT 2019's industry context insights:
'Nonprofit organizations typically operate under fewer regulatory constraints compared to heavily regulated sectors like finance or healthcare. However, they are highly cost-sensitive due to budget limitations and donor expectations.'
This combination makes nonprofits focused on cost-efficiency and operational value delivery, rather than regulatory compliance. In contrast, financial and healthcare sectors are bound by strict regulatory obligations and compliance oversight.
21 comments · newest first
JU
Junita
2 days ago
True, but they often prioritize profit over cost.
JA
Jamal
7 days ago
But what about D) Financial sector? They have low regulation too.
MA
Marva
12 days ago
I agree, nonprofits focus on keeping costs low.
CO
Corazon
17 days ago
I think it's A) Nonprofit enterprises. They operate with less regulation.
NI
Nickole
23 days ago
Exactly, they rely on donations and grants.
CA
Cassi
28 days ago
Right, nonprofits are more flexible with costs.
RA
Raymon
1 month ago
Health care is regulated heavily though.
ST
Stephanie
1 month ago
I feel like C) Health care providers might fit too.
PE
Pearly
1 month ago
True, but they often prioritize profit over cost.
NI
Nicholle
2 months ago
But what about D) Financial sector? They have low regulation too.
NI
Nickole
2 months ago
I agree, nonprofits focus on keeping costs low.
CA
Cassi
2 months ago
I think it's A) Nonprofit enterprises. They operate with less regulation.
BL
Blair
2 months ago
Totally agree, costs are a huge focus in finance!
RA
Raina
2 months ago
Wait, are we really saying the financial sector has low regulation?
MI
Micheline
2 months ago
Health care providers are pretty regulated though.
TA
Tamekia
3 months ago
I think the financial sector fits this description.
CA
Cammy
3 months ago
Definitely not the nonprofit sector.
AL
Alyce
3 months ago
Could it be A? I recall that nonprofits usually have to keep costs low to sustain their operations, but I'm not completely confident.
TI
Tina
3 months ago
I feel like I’ve seen a question like this before, and it was about the health care providers being more regulated, so maybe it's not C either.
FA
Fabiola
3 months ago
I'm not entirely sure, but I remember something about the financial sector being heavily regulated, so I don't think it's D.
CY
Cyril
4 months ago
I think the answer might be A) Nonprofit enterprises since they often operate with limited funding and focus on cost efficiency.