1. Complete the following statement relating to unemployment. Country S is currently experiencing a period of economic contraction, or a ‘bust’ period.
This is likely to create
2. Which TWO of the following are common types of internal control activities within an organisation?
B. Control environment
C. Monitoring of controls
3. SH Co is considering improving its impact on the environment by adopting a sustainable approach to business.
Which THREE of the following statements are correct with regards to the company’s decision?
1. It may help to reduce the organisation’s operating costs.
2. It could lead to an improved relationship with shareholders and other stakeholders.
3. It may improve employee motivation.
4. It would be expected to reduce the administrative burden on management.
4. A large, well-established construction company organises itself on a project basis, using temporary matrix and project team structures.
What cultural type is most likely to fit this organisation?
5. Which of the following statements is correct regarding non-executive directors
6. The scientific school of management advocated which of the following approaches to job design?
7. Which of the following is not a part of the role of a company secretary?
8. Which TWO of the following statements about internal audit are correct?
A. Its role is to assess whether an organisation has sound internal controls.
B. It is a legal requirement for all companies.
C. Internal auditors determine the scope of their own work.
D. It makes recommendations to managers on internal control and governance.
9. Which TWO of the following are examples of ineffective behavior in the workplace?
A. Scepticism that challenges conventional thinking.
B. Passive acceptance of decisions.
C. Dominating discussions at meetings.
D. Being free and open when communicating.
10. Complete the following statement relating to ethical threats. Elsa, an accountant, is preparing the accounts for LM Co, one of her clients. Last year she convinced several investors to put large amounts of money into LM, but Elsa has now discovered that the company has seriously underperformed during the last financial year.
11. Liza is part of a team working in company Astro. She tends to encourage communication between the other members of the group as well as trying to build friendships and relationships between them.
Which of Belbin’s group roles is Liza filling?
12. A Company is transparent in its communications with the outside world.
Which of the following established categories of ethical behavior does this represent?
13. Which of the following is an example of the system used by a company to record sales and purchases?
14. ABC produces a variety of soft drinks. It has two competitors but all three producers use product differentiation to distinguish themselves from each other. What type of market is this?
15. N Co is a large company based in country B. It offers its workers a range of flexible benefits, such as additional holiday time and family health insurance. Its employees are well motivated – even though they are not highly paid.
According to Hofstede, this would indicate that country B is:
16. The company for which Lily works has refused to rectify environmental damage it has caused. This rectification is a legal requirement. The company believes the authorities in the country concerned are too weak to enforce the law.
Which set of corporate values in conflict here?
17. S Co is a medium-sized clothing retail chain that has recently undertaken a stakeholder analysis exercise using Mendelow’s matrix. S feels that the national government currently has little interest in the company, though the directors feel that it would have significant power should it choose to intervene in the company’s affairs.
What strategy would Mendelow’s matrix suggest S takes with regards to the national government?
18. Which of the following is NOT a common feature of committees?
19. Are these statements true or false?
1. Private companies can raise share capital by advertising to the general public.
2. Private companies can raise share capital from venture capitalists.
20. Which of the following is part of the research and development function of a business?
21. Which of the following will be the result of poor quality lateral communication?
22. In the context of work planning, a ………………….. is an undertaking that has a defined beginning and end and is carried out to meet established goals within cost, schedule and quality objectives.
Which word or phrase correctly completes this definition?
23. For home working to be possible, it is necessary to be able to access files both at home and work, and to communicate quickly with colleagues.
Which TWO of the following information technology features would enable this?
A. Email messaging
C. Secure broadband internet access
D. Intergrated databases
24. The price elasticity of demand of good A is negative, its income elasticity of demand is positive and its cross elasticity of demand with respect to good X is negative.
What is the nature of good A?
25. There are a number of different views on ethics within the finance department of Tuna Co. Roy believes that actions should be judged by their outcomes or consequences. Henry states that there is an unchanging set of ethical principles that always applies. Jill believes that right and wrong are culturally determined
Which view of ethics is given by Jill?
26. Which TWO of the following are best shown using a bar chart?
A. The nature of activities within an action plan
B. A sequence of activities within a project
C. The time required for different activities
D. Quantitative relationships between activities
27. In the regulatory system surrounding financial accounting, which body has as a key objective of the development of a single set of enforceable global accounting standards?
28. The following qualities are some of those expected of an accountant, but which is a professional quality as opposed to a personal quality?
29. What is the primary responsibility of the external auditor?
30. A leader may be distinguished from a manager by lack of dependency on:
31. Which of the following is not an element of fiscal policy?
32. Which TWO of the following are characteristics of a public limited company but not a co-operative?
A. Maximising the excess of income over expenditure not a primary objective.
B. Members can vote according to the number of shares owned.
C. Shares can be bought and sold through personal transactions of the members.
D. All members are invited to attend the annual general meeting and participate in decisions at the meeting.
33. In an economic environment of high price inflation, those who owe money will gain and those who are owed money will lose.
Is this statement true or false?
34. Power arising from an individual’s formal position in the organistaion is called;
35. Which of the following types of new legislation would provide greater employment opportunities in large companies?
36. Which of the following statements is correct in relation to monetary rewards in accordance with Herzberg's two-factor theory?
37. Backing up computer files and storing copies of software in separate locations to the main system are examples of which type of controls?
38. Who should set director’s reward and incentive packages, according to corporate governace provisions?
39. Which of the following is a feature of an in effective job advertisement?
40. Which of the following is the correct sequence between sender and receiver within the communication cycle?
41. Jack has been on a training course to learn negotiation skills.
Which THREE of the following are negotiation skills?
A. Define the problem carefully
B. Monitor the behavior of others
C. Evaluate progress towards objectives
D. Try to develop objectives resulting in multiple gains
E. Look for a wide variety of possible solutions
42. In relation to the management of conflict, which of the following approaches will maximize the prospect of consensus?
43. A medium sized manufacturing firm produces a number of reports, for example production and material reports, marketing reports, personnel reports and financial reports.
Which TWO of the following would you expect to see in a production and material reports
A. Sales analyses
B. Wastage rates
C. Transport costs
D. Labour utilization figures
44. In the context of Corporate Social Responsibility, which TWO of the following might sustainability involve?
A. Ethical employment practices
B. Using local suppliers
C. Minimising energy consumption
D. Maintaining long term relationships with suppliers
45. Which of the following statement is true of a progressive tax?
46. In strategic planning, what is the purpose of environmental scanning? 46. In strategic planning, what is the purpose of environmental scanning?
1. (a) Below are a number of statements relating to organisational structure.
Which FOUR of the following statements are correct?
A. A virtual organisation exists where all non-core activities are outsourced to third parties.
B. A scalar chain refers to the number of levels of management within the organisation.
C. Entrepreneurial structures typically suffer from slow decision making.
D. An organisation’s span of control is unaffected by the nature of the work the organization undertakes.
E. Decentralisation tends to reduce training costs within the organisation.
F. A matrix structure may increase conflict between managers.
G. Tall organisations typically have a narrow span of control.
H. A ‘shared services approach’ refers to the centralisation of a previously dispersed function within the organisation.
(b) (i) Commercial organisations can be formed in a number of different ways. Organisation R’s owners are legally separate from the organisation itself. R can only raise money from its existing owners and is not allowed to be listed on the stock exchange, indicating that it is a _1_.
Select the organisation that appropriately fills gap 1 above.
(ii) Organisation B is a _2_. One of B’s customers was injured by a product sold by the organisation. Rather than sue organisation, the customer has sued its three owners, as they are legally in distinguishable from the organisation.
Select the organisation that appropriately fills gap 2 above.
2. (a) Management theory includes a number of important concepts. Classify the following as relating to either leadership, management, supervision or responsibility:
(i) The setting of goals and inspiring subordinates to achieve them.
(ii) The liability of a person to be called to account for his or her actions.
(iii) Ensuring that specified tasks are performed correctly and efficiently by a certain group of workers.
(iv) The use and co-ordination of business resources in order to achieve key objectives.
(b) Fayol created a popular management theory known as ‘Fayol’s five functions of management’.
Which FOUR of the following factors are included in Fayol’s five functions model?
3. (a) The Board of Directors of Desk Co discussed corporate governance concepts.
For each of the above scenarios, select the corporate governance concept being applied by:
(i) The finance director wants to provide financial projections to shareholders which were used as the basis for deciding to proceed with a major overseas investment.
(ii) The marketing director has decided not to authorise a proposed advertising campaign which she believes is misleading, despite the other directors pushing for the campaign to go ahead.
(iii) The HR director, who was responsible for introducing an unsuccessful training programme across the entire business, accepts that he should take the blame for this issue.
(iv) The chief executive has decided not to proceed with a proposed takeover of a competitor, that would not have increased the value of Desk Co, but would have given the directors higher status.
(b) Which of the following describes the minimum level of compliance an organisation must have?
(c) Managers have a duty of faithful service to an organisation. This is known as their……………….
Which phrase correctly fills in the blank?
4. Fly Co has a culture of informality in most of its communications at lower levels, but communications with and amongst members of the board are typically formal. In each of the following circumstances select the appropriate method of communication:
(i) Communicating the findings of an external review into investment possibilities to the board
(ii) Formal document requiring directors’ signatures to be sent to company lawyers
(iii) A meeting between sales managers based in geographically distant locations
(iv) Letting employees know about a staff meeting to be held in one month’s time
(b) Which TWO of the following are effects on an organisation of its employees being ineffective?
A. Staff turnover will increase
B. Deadlines will be missed
C. Problems are not dealt with as they arise
D. Customer satisfaction will increase
5. (a) Which Two of the following are fundamental principles of ACCA Code of Ethics?
(b) Indicate whether the following statements are True or False?
(i) When dealing with ethical dilemmas ACCA students must follow ACCA’s code of conduct.
(ii) There is a public expectation that accountants will act ethically.
6. (a) The external auditor should design audit procedures to have a reasonable expectation of detecting fraud. Everything else is the responsibility of directors.
Which TWO of the following are advantages of computerized accounting systems over manual systems?
A. Corrections can be made quicker
B. The risk of error is eradicated
C. Information is less accessible
D. Processing is faster
(b) A ……………… is a program that deals with a particular part of the accounting system.
Which word fills in the blank above?
(c) A database does not need updating once it has been set up.