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

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Nettie

5 days ago

I'll have to go with A, C, and D. Seems like a no-brainer to me. Although, I do wonder if the shareholders of Y get free healthcare too. Asking for a friend.

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Alonzo

17 days ago

This is easy - A, C, and E. X and Y are polar opposites, one is all about profits, the other about serving the community.

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Tracey

18 days ago

I believe statement D is true as well. Y is likely to have a mixture of financial and non-financial objectives.

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Verdell

24 days ago

I'm going with A, C, and D. Y as a listed company will likely have a mix of financial and non-financial goals, unlike the solely non-profit X.

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Gilbert

11 days ago

User3: Y is likely to have a mix of financial and non-financial goals, so D is also correct.

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Evette

13 days ago

User2: I agree, X will be appraised on value for money, so C is correct.

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Aliza

18 days ago

User1: I think A is correct, X is a not-for-profit organization while Y is for-profit.

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Stefany

1 months 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.

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Hoa

11 days ago

A) X is a not-for-profit organisation while Y is a for-profit organisation.

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Terrilyn

1 months ago

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

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Jesus

1 months ago

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

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Belen

2 months 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.

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Deonna

6 days ago

That's true, X's objective is to provide quality healthcare efficiently.

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Eliseo

10 days ago

Yes, X is funded by the government so value for money is important.

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Lashawnda

13 days ago

C) The performance of X will be appraised primarily on the basis of value for money.

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Man

20 days ago

A) X is a not-for-profit organisation while Y is a for-profit organisation.

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