A government body uses measures based on the 3Es to measure value for money generated by apublicly funded hospital. It considers the most important performance measure to be 'cost persuccessfully treated patient'

Which of the 3Es best describes the above measure

Externality

Economy

Efficiency

Effectiveness

For a not for profit organisation with multiple objectives, which aspect of performance is the mostdifficult to assess

Financial

Economy

Efficiency

Effectiveness

Economy means cost cutting. True or false

True

False

The public service funding system operates on the basis that performance against non-financial objectivesleads to a reduction in the level of funding. True or false

True

False

Stakeholders will have different objectives and companies may deal with this by having arange of performance measures to assess the achievement of these objectives.

Which of the following statements is true in relation to stakeholders

The aim of all performance measures should be to increase short term profit

The only interest of the government is that companies pay their taxes

Shareholders will be looking for increasing dividends and increased share price

Only internal stakeholders need to be considered by companies

Which of the following is an example of an internal stakeholder

Shareholders

Employees

Suppliers

Financiers

What objectives might the following not for profit organisations have

(a) An army (d) A political party

(b) A local council (e) A college

(c) A charity

One of the objectives of a local government body could be 'to provide adequate street lighting throughoutthe area'.

(a) How could the 'adequacy' of street lighting be measured

(b) Assume that other objectives are to improve road safety in the area and to reduce crime. Howmuch does 'adequate' street lighting contribute to each of these aims

(c) What is an excessive amount of money to pay for adequately lit streets, improved road safety andreduced crime How much is too little

What general objectives of non profit seeking organisations are being described in each of the following

(a) Maximising what is offered

(b) Satisfying the wants of staff and volunteers

(c) Equivalent to profit maximisation

(d) Matching capacity available

Non profit seeking organisations

【論述題】

The absence of the profit measure in non profit seeking organisations causes problems for themeasurement of their efficiency and effectiveness.

Required

(i) Explain why the absence of the profit measure should be a cause of the problems referredto.

(ii) Explain how these problems extend to activities within business entities which have a profitmotive. Support your answer with examples.