IGCSE, A Level Business Student Forum

Q16 Analyse the possible objectives of a public sector business. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Financial Stability
[AN] While public sector businesses are not primarily profit-driven, they aim for financial sustainability to continue delivering public services without relying excessively on taxpayer funds.
[AN+] Generating revenue or managing budgets effectively is crucial.

[KN] Economic stimulation
[AN] Some public sector businesses play a role in stimulating the local or national economy.
[AN+] For instance, government-owned transportation agencies can boost economic activity by improving infrastructure and connectivity.

[KN] Job Creation and Economic Development
[AN] Public sector companies have a significant role to play in boosting economic growth and creating jobs, especially in regions where private companies might be less likely to make investments.
[AN+] This goal lowers unemployment and boosts regional economies.

[KN] Environmental and Social Responsibility
[AN] Certain public sector companies place a high priority on social and environmental responsibility.
[AN+] In line with more general community and environmental objectives, they might seek to lessen their influence on the environment, encourage sustainable practices, or assist with social projects.

[KN]social welfare
[AN]they aim to address societal needs, and improve the overall well being of the population
[AN+]this may mean subsidizing services for vulnerable or low income groups.

[KN]employment and job creation
[AN]this gives people stable income
[AN+]this allows them to improve their living standards

[kn] sustainable production [an] public sector businesses do production of such goods that promote sustainability [an+] this can help improve the environment and secure the fulfillment of needs of the future generation

[kn] job creation [an] the firm will also target the government objective of lowering unemployment [an+] this will further help in improving the standard of living due to increase in disposable income

[KN] Social Welfare
[AN] Public sector businesses aim to improve the well being of the citizens by offering services and programs that address social and economic needs
[AN+] thus providing subsides to low income earners

[KN] Economic development
[AN] Public sector businesses may aim to promote economic development by supporting local industries, creating jobs, and stimulating economic growth.
[AN+] thus allows them to improve their living standards

[KN] welfare
[AN] public sector business often look for welfare for the community
[AN+] as stratified public would lead to increase in capital

[KN] employment
[AN] some firms would be aiming for reducing unemployment's
[AN+] they would do this to gain more shareholders as the public would be pleased by the business's work

[KN] Provision of public services.
[AN] PSB often aims for efficient delivery of services like education, healthcare etc in order to make sure every citizen gets equal treatment, ignoring their affordability level.
[AN+] Thus this helps to increase the well being of people which improves their SOL.

[KN] Making poor educated and skilled.
[AN] This makes the poor more employable as more firms are likely to recruit workers because of their abilities and qualification.
[AN+] Thus this increases employment in the country and helps reduce relative poverty.

[kn] financial stability
[an] although a public sectors main aim is not profit it aims to have financial stability so it can continue providing Services and goods to the public without taking high amount of funds or loans
[an+] making it crucial to generate revenue and manage budget
[kn] produce merit goods with provision of basic services like healthcare education and security
[an] thus helping the well-being of pepl and improve standard of living

[KN]To create employment
[AN]Public sector businesses aim to recruit more workers to increase their incomes
[AN]which eventually leads to high SOLS


[KN]To provide merit and essential goods through efficient resource allocation
[AN]Public sector businesses put more resources in production of merit goods to increase their consumption which leads to high social benefits eg through better healthcare
[AN]hence less chances of market failure

[KN]to intervene in monopolies
[AN] Avoid exploitation of customers
[AN+] ensure good quality products with fair prices

[KN] provision of basic services like healthcare is cheap
[AN] ensuring everyone gets access to basic necessities easily
[AN+] improve standards of living and boosting productivity and innovation

[kn] monopoly interference
[an] to prevent the formation of monopolies
[an+] thus not exploiting customers by offering normal prices

[kn] fulfilling the needs of society
[an] offering affordable services such as education, healthcare etc
[an+] as these are the main objectives of the government for development of the country