1.7 Which of the following organisations would rely most heavily on value for money indicators and efficiency rather than information on performance and profitability?
A A private accountancy college
B A local authority
C A small retailer (1 mark)
1.8 ADB is a business which is owned by its workers. The workers share the profits and they each have a vote on how the business is run.
Which of the following best describes ADB?
A Public sector
B Private sector
1.7 B Examiner's comments. The examiner commented that many students struggled with this question. Measures such as value for money or efficiency are often used in not-for-profit organisations such as local authorities. Students should not restrict their studies to the public sector perspective.
1.8 D Rationale: A co-operative is a business which is owned by its workers or customers, who share the profits. Others features include open membership, democratic control, distribution of surplus in proportion to purchases and promotion of education