lOMoARcPSD|11199247 ACCA F1 BT Exam Kit ACCA F1 Practice and Revision Kit by BPP (Association of Chartered Certified Accountants) StuDocu is not sponsored or endorsed by any college or university Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 Question Bank ACCA Business and Technology (BT) From September 2020 Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 ii I n t ro d u c t i on A C C A BT Q ue s t ion Ba nk No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of First Intuition Ltd. Any unauthorised reproduction or distribution in any form is strictly prohibited as breach of copyright and may be punishable by law. We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions and model answers. Additional comments and guidance have been prepared by First Intuition Ltd. © First Intuition Ltd, 2020 APRIL 2020 RELEASE Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk I n t ro d u c t i on How to use this Question Bank 1 QUESTION PRACTICE IS KEY TO SUCCESS This Question Bank has been written to help you pass Business and Technology (BT). Targeted question practice In the first section there are banks of questions based around each chapter of the Course Notes. The number of questions reflects the weighting of the topic to the syllabus. You should attempt to do all the questions before attempting the mock assessments at the end. Do the practice exam and the mock assessments The importance of question practice cannot be underestimated and you should attempt the mocks under assessment conditions. For this paper you have two hours to answer 46 questions in section A and 4 questions in section B. It is vital you stick to the time allocation and answer every question. The types of question that may be included are as follows: Multiple Choice Number Entry You are required to choose one answer from a list of options by clicking on the appropriate radio button You are required to select more than one response from the options provided by clicking the appropriate tick boxes You are required to select a response to a number of related statements by clicking on the radio button which corresponds to the appropriate response for each statement You are required to key in a numerical response to the question Gapfill You are required to enter answers into blank areas Hot Spot You are required to choose one or more answers by clicking on the appropriate hotspot area/ areas on an image Multiple Response Multiple Response Matching OT MTQ A wide representation of the above types of question are included in this Question Bank. Downloaded by Chee Y (cheey990@gmail.com) iii lOMoARcPSD|11199247 iv I n t ro d u c t i on A C C A BT Q ue s t ion Ba nk Contents Page ref Chapter / Syllabus area 1 Organisations, stakeholders and the business environment 1 Multi task questions 2 The macro-economic environment 2 Multi task questions 3 The micro-economic environment 3 Multi task questions 4 Organisational structure 4 Multi task questions 5 Organisational culture and committees 5 Multi task questions 6 Governance and social responsibility 6 Multi task questions 7 Systems, controls and compliance 7 Multi task questions 8 Control, security and audit 8 Multi task questions 9 Identifying and preventing fraud 9 Multi task questions 10 Leading and managing individuals and teams 10 Multi task questions (1) Recruitment and selection Number of OT questions No of Multi task questions 22 6 12 1 23 4 14 5 12 3 10 3 6 1 24 5 16 2 14 3 15 Downloaded by Chee Y (cheey990@gmail.com) Q A 1 109 6 112 11 115 14 116 15 117 22 120 26 122 29 124 33 127 36 128 38 130 40 131 42 133 44 133 45 134 50 137 54 140 58 142 60 143 63 145 65 146 lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk I n t ro d u c t i on Page ref Chapter / Syllabus area Number of OT questions (1) Multi task questions (2) Diversity and equal opportunities Individuals, groups and teams 11 Multi task questions (1) Motivating individuals and groups Training and development 12 Multi task questions A 3 68 148 70 150 72 151 73 152 77 154 80 156 84 158 86 160 90 162 1 14 4 18 (1) Multi task questions 12 Q 8 (2) Multi task questions 11 No of Multi task questions 3 15 3 (1) Performance appraisal 11 92 164 13 Personal effectiveness and communication 14 95 166 13 Multi task questions 98 168 14 Professional ethics 102 171 14 Multi task questions 105 173 177 193 4 11 5 Practice exam questions and answers Practice exam 46 objective test questions covering all areas of the syllabus, plus 6 multi task questions Mock exam A full exam to practise is provided. Question practice, under assessment conditions, is vital to passing this exam. Downloaded by Chee Y (cheey990@gmail.com) v lOMoARcPSD|11199247 vi I n t ro d u c t i on A C C A BT Q ue s t ion Ba nk Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t Chapter 1: Organisations, stakeholders and the business environment Objective test questions 1 Which of the following statements are true? I II III Public companies are owned by the Government. Legal entities owned by private owners are known as limited companies. Organisations can achieve results which cannot be achieved by individuals. I only II only III only I, II and III 2 marks) 2 An independent voluntary association of people who act together for some common purpose (which does not include making money) is known as: A Co-operative A Partnership A Limited Company A Non-Governmental Organisation (2 marks) 3 A private sector organisation is owned by: The Government The shareholders of the organisation The stakeholders of the organisation The employees of the organisation (2 marks) 4 Who is a ‘connected stakeholder’? An employee of a company The Government A manager of a company The customers of a company (2 marks) 5 Stakeholders who have a contractual relationship with an organisation are known as: Primary stakeholders Secondary stakeholders External stakeholders (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 1 lOMoARcPSD|11199247 2 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t 6 A C C A BT Q ue s t ion Ba nk Emvision is a business entity run by Peter Watkins. Peter makes all the decisions relating to the entity and should it fail, will be personally responsible for its debts. Which of the following describes what sort of business Emvision is? Non-Governmental Organisation Private Limited Company Sole trader (1 mark) 7 How is the term ‘synergy’ best described? 8 When individuals work together they achieve more than when the same individuals work on their own. When individuals work on their own they achieve more than when the same individuals work together. When individuals use more energy they achieve more. When groups of individuals use more energy, they achieve more. (2 marks) According to Mendelow’s Matrix, stakeholders in which segment should be kept satisfied? Segment A – high level of interest, high power Segment B – low level of interest, high power Segment C – high level of interest, low power Segment D – low level of interest, low power (2 marks) 9 Which TWO of the following are NOT internal stakeholders of an organisation? Managers Suppliers Employees Shareholders (2 marks) 10 According to Mendelow, which group of stakeholders must companies keep satisfied? Those with little power and little interest in the company Those with a high level of power but little interest in the company Those with little power but a high level of interest in the company Those with a high level of power and a high level of interest in the company (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t An organisation that is accountable to the Government, has a potentially unlimited demand for its services and can obtain its funds by raising taxes is known as what? Public sector organisation Co-operative Partnership (1 mark) 12 According to Mendelow’s matrix, how should stakeholders who have a high level of power and a high level of interest be treated? Keep satisfied Consult/inform Involve Ignore (2 marks) 13 Identify which TWO of the following statements are true. SMART analysis is a model that is concerned with the general environmental influences on a business Money that is given in exchange for goods and services is known as consideration Employees and shareholders are internal stakeholders of an organisation Resources available to public sector organisations are limited (2 marks) 14 What is the name of the framework that is concerned with the general ‘environmental’ influences on a business? INITIAL analysis SMART analysis PEST analysis (1 mark) 15 Under contract law, money that is given in exchange for goods and services is known as: Agreement Consideration Financial (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 3 lOMoARcPSD|11199247 4 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t 16 A C C A BT Q ue s t ion Ba nk Jane has an employment contract that requires her to give two months’ notice of her intention to leave Ray Limited and that they give her a similar period of notice should they wish to terminate her employment. One Friday afternoon, Jane is called into her manager’s office and told that her job no longer exists and she will no longer be required. He also tells her that she will receive one month’s pay in lieu of notice. What sort of breach of contract law has taken place here? Unfair dismissal Contractual dismissal Dismissal without notice Wrongful dismissal (2 marks) 17 Which of the following equations sums up the basics of contract law most accurately? Contract = Offer + Agreement Acceptance = Agreement + Offer Agreement = Offer + Acceptance Offer = Agreement + Acceptance (2 marks) 18 The term commonly used to describe the impact that an organisation’s activities have on the environment is: Environmental pollution Environmental depletion Environmental footprint (1 mark) 19 The Data Protection Act 2015 regulates how personal information is used and protects individuals from misuse of personal details. Which TWO of the following are NOT requirements of the Act? Regulated personal information should be kept longer than necessary Regulated personal information should be processed for unlimited purposes Regulated personal information should not be transferred abroad without adequate protection Regulated personal information should be adequate, relevant and not excessive (2 marks) 20 Which of the following is NOT an advantage of outsourcing? Economies of scale Flexibility It encourages employees to keep up-to-date with new developments in their industry It can remove uncertainty about cost (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 21 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t Olga bought a ‘Happy Cook’ cast-iron pan from Barters Ltd, but when she unpacked it at home, she saw that the wooden handle was broken. The next day, she returned to the store where she bought it and asked for a full refund. The sales assistant refused to give a refund, her reason being that it was the responsibility of ‘Happy Cook’ to sort out the problem. Which of the following answers best describes what should happen if the law is being followed? ‘Happy Cook’ is responsible for giving Olga a full refund. Barters Ltd are responsible for giving Olga a full refund. ‘Happy Cook’ is responsible for giving Olga a partial refund. Barters Ltd are responsible for giving Olga a partial refund. (2 marks) 22 A PESTEL analysis is a useful way of understanding the external environment in which a business or organisation is operating. Which ONE of the following is an example of a social or demographic factor that can influence or constrain a business? Increasing globalisation Changes in taxation levels An aging population (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 5 lOMoARcPSD|11199247 6 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Which of the following statements relating to redundancy is true? Employees must have a minimum of one year’s service to qualify for redundancy. If an employer needs fewer workers at a new location, then this will be fair dismissal or redundancy of the employees concerned. Employees must be under 65 years old in order to take redundancy. Pregnant employees cannot take redundancy because they will receive maternity benefit instead. (2 marks) Task 2 Identify whether or not it is unlawful to discriminate against someone on the grounds of the following characteristics. Unlawful Not unlawful Age Nationality Religion Gender (2 marks) (Total = 4 marks) QUESTION TWO Background M Co has decided to outsource its IT support to N Co. Task 1 Identify which TWO of the following are disadvantages for M Co as a result of this decision. M Co will become a more complex organisation. Urgent IT issues at M Co may not be resolved as quickly. Ongoing IT costs of M Co may increase. Longer-term contracts with N Co will be prone to disruption. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t Task 2 Fill in the gaps in the guidance about the Data Protection Act from the words listed below. The Data Protection Act applies to organisations that hold personal data about data 1 _____. The Act requires that information that is held about individuals should be 2 ____, 3 _____ and 4 ______. (1) subjects users adequate sufficient reasonable relevant comprehensive not excessive (2) (3) (4) (2 marks) (Total = 4 marks) QUESTION THREE Background Amberley plc has identified the following as possibly significant stakeholders. Task 1 Identify which FOUR of the following stakeholders are connected stakeholders. Pratish Gill, the company’s Chief Executive Pulborough plc, a major customer Petworth Limited, the Amberley’s principal supplier The Royal Welsh Bank, which made a 10-year $1 million loan to Amberley five years ago. This loan is secured against Amberley’s property. Amberley has met all of its commitments in the loan agreement. Brenda Towers, the MP in whose constituency Amberley’s head office is located Byworth Limited, a small business located next door to Amberley’s principal storage depot. Amberley has generally maintained good relations with Byworth. Greenspace, a local pressure group concerned about Amberley’s activities Elm Lodge Mutual Fund, an institutional shareholder that has just purchased 10% of Amberley’s share capital (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 7 lOMoARcPSD|11199247 8 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t A C C A BT Q ue s t ion Ba nk Task 2 Use Mendelow’s classification to assess the importance of the following stakeholders, complete the table by using the words High and Low. Power Interest Greenspace Elm Lodge Mutual Fund Byworth Limited The Royal Welsh Bank (2 marks) (Total = 4 marks) QUESTION FOUR Background There are a number of ways of classifying stakeholders, including whether the organisation needs their support to continue in business and whether their involvement with the organisation is voluntary or involuntary (meaning that the stakeholders cannot withdraw from the relationship themselves). Fulchester Rovers football club is seeking to build a new football ground on some open land at the edge of Fulchester, to meet the requirements imposed by the football authorities that govern the league in which Fulchester Rovers plays. The plan is controversial, as environmental pressure groups claim that local wildlife will be disturbed. Fulchester Rovers’ fans are also unhappy because of the poor transport links to the ground. Task 1 Match the following groups of stakeholders with the principal objective that they are likely to have. High earnings growth Employees Suppliers Shareholders Fans Quality of football Prompt payment for goods Security of tenure (2 marks) Task 2 Classify the following stakeholder groups according to whether Fulchester Rovers needs their support to continue in business, and whether the stakeholders’ involvement with Fulchester Rovers is voluntary. Needs support Voluntary Environmental pressure groups Fulchester Rovers’ fans League authorities Local wildlife (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t QUESTION FIVE Task Fill in the gaps in the definition of a contract from the words listed below. A/an (1)________ supported by (2)______ from both parties and made with the intention to be (3)_____ by parties who have the (4)_____ to make such an agreement. (1) undertaking promise agreement transaction payment consideration commitment promises morally enforceable permanent for a specific timescale legally binding business resources economic capability legal capacity strategic opportunity (2) (3) (4) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 9 lOMoARcPSD|11199247 10 1: O rg an i s at i o n s, s t ake h ol d e rs an d t h e b u s in e s s e n v iro n me n t A C C A BT Q ue s t ion Ba nk QUESTION SIX Task 1 Which of the following are characteristics of public sector organisations? Characteristic Not characteristic Accountability to the government Potentially unlimited demand for its services Funds can be obtained by raising taxes Unlimited resources (2 marks) Task 2 A member of staff at the call centre of a bank has printed out some of the information held electronically about some of the company’s customers. He has ‘lent’ it to a friend of his so that he can use it for marketing purposes. Which of the following legal factor(s) are involved in this action? Criminal law Involved Not involved Company law Employment law Data protection (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 2: T h e mac ro - e c o no mi c e n v i ro n men t Chapter 2: The macro-economic environment Objective test questions 1 _______________________________________will be reached where aggregate supply = aggregate demand. Which of the following most accurately completes the sentence shown above? Full employment National Income Inflationary gap Equilibrium National Income Deflationary gap (2 marks) 2 In which of the following situations does a ‘deflationary gap’ arise? When resources are fully employed When resources are unemployed When there is high unemployment and high inflation When there is low unemployment and low inflation (2 marks) 3 If a country’s government has a positive net cash requirement, then which of the following are true? I II III IV The government’s income exceeds its expenditure The government’s expenditure exceeds its income The government is running a budget deficit The government is running a budget surplus I and III I and IV II and III II and IV (2 marks) 4 Which of the following taxes is an example of an indirect tax? Inheritance tax VAT Capital gains tax (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 11 lOMoARcPSD|11199247 12 2: T h e mac ro - e c o no mi c e n v i ro n men t 5 A C C A BT Q ue s t ion Ba nk Quantitative easing is a policy of which type of economic policy and what sort of time target does it work in (short or medium term)? Monetary policy, works in the short term Monetary policy, works in the medium term Fiscal policy, works in the short term Fiscal policy, works in the medium term (2 marks) 6 The total workforce of Ruritania is 17.3 million and the government has just announced that unemployment has risen to 578,000. The rate of unemployment (to the nearest whole percent) is: 3% 4% 5% (1 mark) 7 Classify the following as either injections into or withdrawals from the economy. Injection Withdrawal Expenditure on imports Investment Savings (2 marks) 8 Which of the following is NOT considered to be a function of taxation? A method which allows wealth and income to be re-distributed A method by which government income can be raised A method by which domestic industries can be protected from competition from abroad A method which causes interest rates to rise (2 marks) 9 The government of Country XYZ sets monetary policies in order to reduce the rate of inflation to a sustainable low level and has recently raised interest rates. Which of the following statements about the impact of this monetary policy in Country XYZ is correct? The cost of borrowing in Country XYZ will increase if interest rates rise The cost of borrowing in Country XYZ will decrease if interest rates rise Profits of companies in Country XYZ will rise if interest rates rise Saving investments in Country XYZ will be less attractive if interest rates rise (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10 2: T h e mac ro - e c o no mi c e n v i ro n men t Which of the following is NOT an element of fiscal policy? Interest rates Borrowing Revenues Expenditure (2 marks) 11 A period of high inflation would be most detrimental to which of the following groups? A company that has stockpiled product Organisations with long-term receivables Home owners with large mortgages (1 mark) 12 Which TWO of the statements shown below are NOT true? Exchange rates are not an element of monetary policy Interest rates are not an element of monetary policy Frictional unemployment is short-term in nature Seasonal unemployment is short-term in nature (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 13 lOMoARcPSD|11199247 14 2: T h e mac ro - e c o no mi c e n v i ro n men t A C C A BT Q ue s t ion Ba nk Multi task question QUESTION ONE Task 1 Identify whether the following types of unemployment are long-term or short-term in nature. Unemployment category Frictional Long-term Short-term Structural Seasonal Technological (2 marks) Task 2 If the exchange rate falls between the British Pound and the Euro, identify whether the following are TRUE or FALSE. True False Imports become more expensive to the UK Imports become cheaper to the UK Exports become more expensive to countries that use the Euro Exports become cheaper to countries that use the Euro (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t Chapter 3: The micro-economic environment Objective test questions 1 Which of the following factors determine the demand for a good? I II III IV The price of the good The cost of making the good The price of substitute goods Tastes and fashion I, II and IV II, III and IV I, II and III I, III and IV (2 marks) 2 The law of demand represents the quantities of a good or service that consumers are willing and able to purchase at various prices. Are the following statements relating the implications of the Law of Demand true or false? True False The demand curve shows an inverse relationship between price and quantity demanded The demand curve has a negative slope The demand curve is downward sloping (2 marks) The graph below shows the quantity of a product that is demanded at different price levels. Demand curve 7 6 5 Price ($) 3 4 3 2 1 0 Series 1 3Kg 6Kg 9Kg 6 4 2 Downloaded by Chee Y (cheey990@gmail.com) 15 lOMoARcPSD|11199247 16 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t A C C A BT Q ue s t ion Ba nk If the price of the product is reduced to $3, what is the estimated quantity demanded? 3.0 Kg 4.5 Kg 6.0 Kg 7.5 Kg (2 marks) 4 With reference to the following graph, what is the equilibrium price of Product X? £350 £300 £250 £200 Series 1 Series 2 £150 £100 £50 £0 Quantity £100 £200 £300 (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t Study the following graph: £350 £300 £250 £200 Series 1 Series 2 £150 £100 £50 £0 Quantity If the Government were to set a maximum price of £250 for Product X, which of the following would happen? There would be excess demand over supply There would be excess supply over demand Market failure Market equilibrium (2 marks) 6 Product A has a complementary product - Product B - and a substitute product - Product C. Which of the following would cause the demand curve of Product A to shift to the left? A fall in direct tax on incomes A fall in the price of Product A A decrease in the price of Product B A fall in the price of Product C (2 marks) 7 Cars and tyres are examples of: Substitutes Complements Unrelated products (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 17 lOMoARcPSD|11199247 18 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t 8 A C C A BT Q ue s t ion Ba nk If demand for Product X falls as household incomes rise, Product X is known as which of the following? Substitute good Complementary good Inferior good Superior good (2 marks) 9 The responsiveness of the demand for a product to changes in household income is known as: ………………………………………………………………………………………………………. Which of the following correctly completes the sentence above? Household elasticity of demand Product elasticity of demand Price elasticity of demand Income elasticity of demand (2 marks) 10 A store sells 1,000 units of Product MR in a quarter and 1,200 units of the same product in the following quarter when household income is 25% higher. Is the following statement TRUE or FALSE? The income elasticity of demand of Product MR is 1.25 True False (1 mark) 11 A store sells 1,000 units of Product LW in a quarter and 1,200 units of the same product in the following quarter when household income is 25% higher. Is the following statement TRUE or FALSE? The demand for Product LW is said to be income elastic. True False (1 mark) 12 A store sells 1,000 units of Product LBR in a quarter and 1,200 units of the same product in the following quarter when household income is 25% higher. Product LBR can be described as what type of good? Necessity Complementary Inferior product Luxury product (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 13 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t Which of the following statements about Jaguar E-types (expensive classic cars) is true? Their income elasticity of demand is negative Their income elasticity of demand is between 0 and 1 Their income elasticity of demand is greater than one (1 mark) 14 Product LBR is sold for $1.50 during September. It is expected that the demand for this product will fall in October from 28,000 to 21,000 units when the price is raised to $1.80. What is the point elasticity of demand when the price is $1.50? Answer_____________________________________________ (1 mark) 15 The price mechanism brings demand and supply of a product into equilibrium and identifies the equilibrium price. The equilibrium price is also known as the: Equal price Market clearing price Cost-plus price (1 mark) 16 British tourists are responsible for the high demand for hotel rooms in St Petersburg, Russia during July and August. Which TWO of the following would lead to a decrease in the demand for hotel rooms in St Petersburg during the summer months? Fall in the value of the Russian Rouble Fall in the value of British Sterling Fall in the price of flights to St Petersburg Increase in the price of flights to St Petersburg (2 marks) 17 Which of the following statements regarding the CAP (Common Agricultural Policy) is NOT true? It guarantees a maximum price above the market equilibrium price It encourages an excess of agricultural goods to be supplied It guarantees a minimum price above the market equilibrium price (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 19 lOMoARcPSD|11199247 20 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t 18 A C C A BT Q ue s t ion Ba nk Which one of the following is NOT one of Porter’s five competitive forces? Threat of substitutes Bargaining power of customers Threat of new entrants Bargaining power of Government bodies (2 marks) 19 ABC sells mobile telephones. Each phone sold is supplied with a charger, earpiece, car charger and other accessories which can only be used with ABC Co phones. Its predictive text style is also very different to that of other manufacturers. To which of Porter’s five forces is this strategy intended to respond? 20 (2 marks) In relation to how cloud computing can be used by a finance department, which of the following statements is NOT true? 21 Bargaining power of suppliers Bargaining power of customers Threat of new entrants Intensity of competitive rivalry It ensures that confidential financial information is maintained securely It can facilitate off-shoring of the finance department It can allow the finance department to work more flexibly which may improve morale It enables collaboration between finance professionals who are geographically diverse (2 marks) “The speed of data creation is exponentially greater than it was even just a few years ago. An organisation needs to process data within a reasonable time frame.” This statement describes the Big Data characteristic of . Please select a term from the list below to complete the sentence above. Veracity Volume Visibility Velocity Variety Variability (2 marks) 22 Big Data enables managers to measure results, and therefore know more about their businesses. This should lead to: Reduced spend on IT Reduced need for marketing staff Better decision making and business performance Increased power for managers (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 23 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t Match the following two explanations to the appropriate technological development. Process automation Artificial intelligence Options The use of robots to carry out low level, repetitive tasks The use of machines in decision-making (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 21 lOMoARcPSD|11199247 22 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Which of the following statements about price elasticity are correct? Correct Incorrect An item which has price elasticity greater than one is price insensitive. An item that has an elasticity of less than one is said to be inelastic. If demand for an item is inelastic and its price falls, total revenue will decrease. It is defined as the percentage change in price divided by the percentage change in demand. (2 marks) Task 2 Are the following probable consequences of a rise or fall in interest rates? Rise Fall A rise in the demand for consumer credit A rise in business investment A rise in the exchange rate A rise in the demand for housing (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t QUESTION TWO Task 1 Study the following graph: £350 £300 £250 £200 Series 1 Series 2 £150 £100 £50 £0 Quantity If the Government was to set a maximum price of £150 for Product X, which TWO of the following would be true? The quantity of Product X supplied would increase The quantity of Product X supplied would decrease The quantity of Product X purchased would increase The quantity of Product X purchased would decrease (2 marks) Task 2 Are the following statements TRUE or FALSE? Inferior goods have a negative income elasticity of demand Elastic goods are luxuries and have an income elasticity of demand of 1 True False (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 23 lOMoARcPSD|11199247 24 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t A C C A BT Q ue s t ion Ba nk QUESTION THREE Background DEF Co supplies a patented bottled sauce through supermarkets and independent food shops throughout the world. Task 1 Which TWO of the following statements relating to monopolies are NOT true? Monopolists are price takers. Monopolists charge higher prices than perfectly competitive firms. Monopolists produce lower levels of output than perfectly competitive firms. Monopolists cannot earn supernormal profits in the long-term. (2 marks) Task 2 Identify whether the following would be significant barriers to entry in DEF Co’s industry. Supplier concentration Yes No Access to distribution channels Economies of scale Industry growth rate (2 marks) (Total = 4 marks) QUESTION FOUR Task 1 Categorise the following features of a business’s environment under the relevant category in the PEST framework. Political Economic Social Technological Foreign exchange markets Consumer protection Business spending on research Home working (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 3: T h e mi c ro -e c o n o mi c e n v i ro n me n t Task 2 State whether or not markets with the following features could be perfectly competitive. Perfectly competitive Not perfectly competitive There is a small number of significant producers. There are significant differences between the products each producer offers. The Internet means that information about the prices set by all producers is readily available. New entrants need to commit significant financial resources to be successful in the industry. It is possible for firms to gain a significant advantage by introducing new technologies. Firms in the industry operate an unofficial system of price maintenance to keep profit levels at a reasonable level. There is considerable movement of labour between firms operating in the industry. Firms are price takers. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 25 lOMoARcPSD|11199247 26 4: O rg an i s at i o n al s t ru c t u re A C C A BT Q ue s t ion Ba nk Chapter 4: Organisational structure Objective test questions 1 Which of the following is NOT an advantage of the informal organisation for managers? Knowledge sharing Responsiveness Co-operation Compliance (2 marks) 2 According to Mintzberg, the means of co-ordination preferred by the ‘strategic apex’ is: Direct supervision Mutual adjustment Standardisation of output Standardisation of skills (2 marks) 3 What is the main advantage of geographic departmentation? Expertise can be pooled It avoids duplication Poor co-ordination is avoided There is local decision making (2 marks) 4 Which of the following terms is NOT used by Mintzberg in his description of the components of all organisations? Operating staff Middle Line Strategic Apex Technostructure (2 marks) 5 Which TWO of the following activities are indicative of an organisation which is ‘delayering’? Decreasing average span of control Increasing average span of control Increasing the number of middle management redundancies Increasing management levels (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6 4: O rg an i s at i o n al s t ru c t u re Which of the following is NOT one of the classifications of the Anthony hierarchy? Middle management Strategic management Tactical management Operational management (2 marks) 7 If an organisation were to group together employees who carry out similar tasks, this would be known as: Functional departmentation Geographic departmentation Product/brand departmentation (1 mark) 8 Which of the following statements is correct? Centralisation leads to greater co-ordination and flexibility but less control Centralisation leads to greater co-ordination and control, but less flexibility Centralisation leads to greater co-ordination, control and flexibility Centralisation leads to greater co-ordination, but to less control and flexibility (2 marks) 9 Which ONE of the following features of organisational structure is NOT associated with flexibility and adaptability? Matrix Scalar chain Horizontal (1 mark) 10 The ‘span of control’ refers to: The geographical dispersal of employees working for a manager The number of employees working for a manager The ability of the employees working for a manager (1 mark) 11 With reference to Anthony’s hierarchy of goals in an organisation at the tactical level, identify which ONE of the following statements are true? True False The tactical roles are Guardian and Advisor roles Co-ordinators are responsible for implementing decisions Guardians ensure that the decision is implemented within the time and budget specified at the tactical level (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 27 lOMoARcPSD|11199247 28 4: O rg an i s at i o n al s t ru c t u re 12 A C C A BT Q ue s t ion Ba nk In the value chain, the activities that are directly related to production, sales, marketing, delivery and service are known as: Operational activities Support activities Primary activities Secondary activities (2 marks) 13 In the value chain, the activities that are directly related to procurement, technology development, human resource management and firm infrastructure are known as: Operational activities Support activities Primary activities Secondary activities (2 marks) 14 Which of the following is a primary activity in Porter’s value chain model? Procurement Outbound logistics Technology development Firm infrastructure (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 4: O rg an i s at i o n al s t ru c t u re Multi task questions QUESTION ONE Background William Limited is an organisation with a strongly traditional outlook. It is structured and managed according to classical principles: specialisation, the scalar chain of command, unity of command and direction. Personnel tend to focus on their own distinct tasks, which are strictly defined and directed. Communication is vertical rather than lateral. Discipline is much prized and enshrined in the rule book of the company. Task 1 Identify which TWO of the following statements are NOT true. Swift decisions are likely to be made at William Limited. Using Handy’s classification, William Limited has a role culture. William Limited is organised in a matrix structure. Employees at William Limited are likely to have precise job descriptions and clearly delegated authority. (2 marks) Task 2 With reference to Anthony’s hierarchy of goals in an organisation at the strategic level, identify whether the people described below are Rule Providers, Experts or Advisors. Provide input and analysis to ensure that decisions are made with the best available information Provide extra or specialised information if it is required Rule Providers Experts Advisors (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Which TWO of the following are considered to be advantages of centralisation? Quicker decisions are made. Standardisation will be increased. Motivation of junior managers is likely to increase. Most decisions will be made by local staff with operating expertise. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 29 lOMoARcPSD|11199247 30 4: O rg an i s at i o n al s t ru c t u re A C C A BT Q ue s t ion Ba nk Task 2 With reference to Anthony’s hierarchy, state whether the following individuals are operating at a strategic, tactical or operational level. Strategic Tactical Operational Mark, who uses his marketing expertise to advise on how the branch network should develop Sasha, a senior management accountant who compares branch performance with budgeted performance and investigates variances Sunil, a regional manager with a number of local branch managers reporting to him, who is responsible for the overall performance of his region Owen, who deals with customers with queries in a local branch (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Which TWO of the following are features of informal networks? They undermine organisational structures. They directly support management objectives. They develop spontaneously. They reflect patterns of power and influence. (2 marks) Task 2 Match the following business features to the type of organisation where they are likely to apply. Entrepreneurial Functional Matrix Divisional Culture created by business founder Organisation is based on tasks involved in projects Individuals’ influence depends on the roles they have rather than their personal qualities Head office has limited role, mainly offering support services (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 4: O rg an i s at i o n al s t ru c t u re QUESTION FOUR Task 1 Identify which TWO of the following are advantages of a matrix organisation structure. It allows for a mix of skills and expertise. Authority over staff is clearly defined. It facilitates managers being held responsible for end results. It is simpler than a functional structure. (2 marks) Task 2 Identify which statements in relation to organisation structure are TRUE and which are FALSE. True False In a matrix organisation, it is possible for an individual to have several line managers. Small, simple, companies dominated by one person do not have a succession problem as they are limited companies. In a divisional structure each division is largely autonomous. Functional organisations are normally fluid with rapid information flows. (2 marks) (Total = 4 marks) QUESTION FIVE Task 1 Which TWO of the following characteristics does the entrepreneurial structure have? Wide span of control Maximum hierarchy Narrow span of control Minimal hierarchy (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 31 lOMoARcPSD|11199247 32 4: O rg an i s at i o n al s t ru c t u re A C C A BT Q ue s t ion Ba nk Task 2 Annelise, Louise, Abi and Hayley all work for P&P Ltd. Annelise works in the finance department and Louise works in the human resources department. Abi is Hayley’s line manager in the administration department. Which member(s) of staff have access to information relating to employee salaries? Annelise Access No access Louise Abi Hayley (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk Ch ap t e r 5: O rg an i s at i o n al c u lt u re an d c o mmi t t e es Chapter 5: Organisational culture and committees Objective test questions 1 What are the four Ps of the marketing mix? Product, price, profit, promotion Product, place, profit, promotion Product, place, price, profit Product, place, price, promotion (2 marks) 2 Culture can be defined as the ‘the collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we do and think in an organisation.’ Who is this definition attributed to? Mullins Maslow Schein Schwartz & Davies (2 marks) 3 Harrison and Handy identified four different types of culture: Power; Role; Task; and Person. With regard to the above, this type of culture is controlled by a key figure and suits smaller organisations where there is little conflict between employees. Power Role Task Person (2 marks) 4 Research carried out indicated that the workforce of Country X displayed behaviour which was dominated by assertiveness, competitiveness and decisiveness, whereas that of Country Z placed a high value on the quality of life and personal relationships. Which ONE of the four main cultural dimensions of Hofstede’s model are demonstrated in the scenario above? Power distance Uncertainty avoidance Individualism Masculinity / femininity (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 33 lOMoARcPSD|11199247 34 2: Ch ap t e r 5: O rg an i s at i o n al c u lt u re an d co mmi t t e es 5 A C C A BT Q ue s t ion Ba nk Which of the following departments are involved in managing the employees of an organisation? Sales department Human resources department Administration department (1 mark) 6 Which of the following is NOT part of the management accounting function? Planning External reporting Decision making Control (2 marks) 7 In order to ensure that an organisation obtains employees with appropriate qualifications and skills, which part of the human resource cycle is relevant? Selection Performance Rewards Training and development (2 marks) 8 Ilya is the union representative at Acorn College. He is also head of studies responsible for the recruitment and appraisal of lecturing and administrative staff. The union is in dispute with the government over teaching salaries and staffing levels. What phenomenon is Ilya experiencing? Role ambiguity Role conflict Role overlap Role duplication (2 marks) 9 Which of the following is a DISADVANTAGE of using a committee rather than an individual to make a decision? Slower decisions Autocratic decisions Unworkable decisions (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10 Ch ap t e r 5: O rg an i s at i o n al c u lt u re an d c o mmi t t e es Handy identified four different types of culture: Power; Role; Task; and Person. With regard to Handy, this type of culture is slow-to-change, more formal, less personal and rather bureaucratic. Power Role Task Person (2 marks) 11 Organisational culture has been defined by whom as ‘a pattern of beliefs and expectations shared by the organisation’s members, and which produce norms which powerfully shape the behaviour of individuals and groups in the organisation.’ Hofstede Maslow Schein Schwartz & Davies (2 marks) 12 According to Schein, there are three different levels at which culture can be understood. The ‘observable, expressed or explicit elements of culture’ are to be found at which level? First level Second level Third level (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 35 lOMoARcPSD|11199247 36 2: Ch ap t e r 5: O rg an i s at i o n al c u lt u re an d co mmi t t e es A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Identify whether the following statements relating to marketing are TRUE or FALSE. The main function of marketing is to maximise sales volume. True False The four Ps of the marketing mix are product, price, profit and promotion. (2 marks) Task 2 Which FOUR of the following are key cultural factors identified by Hofstede? Strategic apex Power distance Individualism Technostructure Uncertainty avoidance Long-term orientation Social needs Interpersonal relations (2 marks) (Total = 4 marks) QUESTION TWO Background The following dimensions are used by Hofstede to classify types of organisational behaviour. 1 High A Masculinity B Individualism C Uncertainty avoidance D Power distance E Long-term orientation 2 Low Consider the following organisations. Company A is a long-established department store. Major decisions are made by the board and each floor is organised according to a strict hierarchy, with managers and supervisors on each floor. Junior staff on each floor have no input into decision-making. Staff roles are strictly defined. Company B is an IT consultancy founded by a group of IT specialists who had previously worked together in a larger company. Each consultant is expected to take responsibility for his or her own consultancy work. Although one of the group has been appointed as Chief Executive, staff meetings work on the principle of “one person, one vote” with everyone being expected to contribute to discussions. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk Ch ap t e r 5: O rg an i s at i o n al c u lt u re an d c o mmi t t e es Company C is a financial services company that was fined by its regulator a couple of years ago. Since then the company has tightened up its procedures. All staff are briefed on the rules they are expected to follow and are expected to record thoroughly all dealings with the general public. Mechanisms exist for staff to raise queries and report other staff whose behaviour appears doubtful. Company D is a prep school which is owned by its Head Teacher. All the principal decisions are made by the Head Teacher. A number of staff, both male and female, have been at the school for a long time. During term time staff are expected to work long hours and undertake a wide range of duties, including, if necessary, covering for colleagues. Task For the four companies described, select which combination of dimensions apply from the Hofstede grid (for example, A1). Company A _________________________________________________________ Company B _________________________________________________________ Company C _________________________________________________________ Company D _________________________________________________________ (Total = 4 marks) QUESTION THREE Task 1 Match the description with the type of culture identified by Handy. A strong team that solves problems, is flexible and whose main aim is to get the job done Strong central control of a small organisation by a single key figure A stable, rational, organisation, with a bureaucratic culture and an authority system based on position and function An organisation designed to serve the interests of the staff within it, with managers acting as facilitators Power Role Task Person (2 marks) Task 2 Identify which of the following features of the marketing mix relate to goods and services and which only relate to services. Physical evidence Promotion People Place Goods and services Services only (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 37 lOMoARcPSD|11199247 38 6: G o v e rn an c e a n d s o ci al re s p on s i b il i t y A C C A BT Q ue s t ion Ba nk Chapter 6: Governance and social responsibility Objective test questions 1 The honesty an organisation demonstrates with its employees, customers and suppliers is known as: Independence Accountability Integrity (1 mark) 2 The usual purpose of codes of practice on corporate governance is to: Establish legally-binding requirements for all companies to adhere to Provide a comprehensive framework for administration and management Provide guidance on the standards of best practice for companies to adopt (1 mark) 3 Which of the following are disadvantages of non-executive directors? I II III They provide a narrower perspective than executive directors They are less able to reassure third parties including shareholders They are able to be more independent than the full board members I only II only III only None of the above (2 marks) 4 If a company allows a situation to develop and remain unresolved until the public or the government, for example, discover it, this is known as: Proactive strategy Reactive strategy Defence strategy Accommodation strategy (2 marks) 5 What is implied by a ‘defence strategy’? A company is prepared to take full responsibility for its actions, for example, by recalling a product as soon as it discovers a fault A company tries to reduce or avoid further obligations which may arise from a specific problem/fault with a product A company will allow a specific problem/ fault to remain in place until another party finds out about it A company will take responsibility for its actions only when it is encouraged to do so or if it believes that by not doing so, the Government will intervene (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6 6: G o v e rn an c e a n d s o ci al re s p on s i b il i t y Who makes up the audit committee of a company? Executive directors only Non-executive directors only Both executive and non-executive directors (1 mark) 7 With respect to the relationship between law, governance, social responsibility and ethics, complete the following table, identifying whether the statements made are TRUE or FALSE. Public listed companies and limited companies are regulated by corporate governance Social responsibility only needs to be considered by a company if it employs more than 1,000 employees worldwide Only public listed companies must demonstrate consideration of corporate governance guidance Adopting an ethical position or not depends on the size of the company concerned True False (2 marks) 8 The majority of corporate governance reports are based on four main principles. Which of the following is not one of the main principles of corporate governance? Integrity Accountability Confidentiality (1 mark) 9 Which of the following measures will help an organisation to limit its environmental impact? 1 Recycling waste 2 Using energy efficient electrical appliances 3 Selecting suppliers carefully 4 Buying raw materials locally 1 and 2 only 2 and 4 only 1 and 3 only 1, 2, 3 and 4 (2 marks) 10 YYY Limited is an organisation which tends to respond differently to its various social responsibility objectives, by taking into account the views of stakeholders. With respect to the Agency theory, YYY Limited is adopting which type of strategy? Proactive Reactive Accommodation (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 39 lOMoARcPSD|11199247 40 6: G o v e rn an c e a n d s o ci al re s p on s i b il i t y A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Identify whether the following statements relating to non-executive directors are TRUE or FALSE. One of the main disadvantages of non-executive directors is the limited time that they have to attend to the company’s affairs. Only non-executive directors should staff the audit committee of a company. True False (2 marks) Task 2 Identify which of the following would be the responsibilities of a Chairman of a meeting and which would be the responsibilities of a Secretary. Chairman Secretary Advising committee members of the deadlines of submitting items for the agenda Informing committee members of the date, time and place of the next meeting Advising committee members of the terms of reference for the meeting Allocating discussion time for each item on the agenda (2 marks) (Total = 4 marks) QUESTION TWO Task 1 For key areas involving conflicts of interest, the board of directors should establish sub-committees made up of non-executive directors only. Which of the following committees should be made up of non-executive directors only? Non-executives only Non-executives and executives Social responsibility Risk Audit Remuneration (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6: G o v e rn an c e a n d s o ci al re s p on s i b il i t y Task 2 Select from the following if a feature or not a feature of corporate governance. Feature Not a feature Lack of independent scrutiny Regular meetings with institutional shareholders Domination by a single person or small group Emphasis on short-term profitability (2 marks) (Total = 4 marks) QUESTION THREE Background There are four different strategies a company may adopt in relation to its corporate social objectives. Task State what kind of strategy a business is adopting if it does the following. Issues widely-drawn disclaimers of responsibility for faults with products Only deals with problems with products when complaints are made by consumers Withdraws a whole range of products from sale when a fault is found with one product in the range Has regular meetings with consumer groups and makes changes to the product specification in the light of the feedback from these meetings Proactive Reactive Defensive Accommodation (4 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 41 lOMoARcPSD|11199247 42 7: Sys t e ms , c o n t ro ls an d c o mp l i an c e A C C A BT Q ue s t ion Ba nk Chapter 7: Systems, controls and compliance Objective test questions 1 ABC Ltd is required by law to file a copy of its accounts so that they are available to the public. Where are the copies of ABC Ltd’s accounts filed? HM Revenue & Customs Companies House Company Head Office (1 mark) 2 ‘When a company produces monthly management accounts, they must comply with both company law and accounting standards.’ Which of the following regarding the above statement is true? 3 What is a ‘qualified’ audit report? 4 This statement is true, management accounts must comply with both company law and accounting standards. This statement is false, management accounts must only comply with company law (not accounting standards). This statement is false, management accounts must only comply with accounting standards only. This statement is false, management accounts do not need to comply with either company law or accounting standards. (2 marks) An audit report which has been prepared by a qualified accountant. An audit report which is prepared when the company’s auditors believe the accounts show a true and fair view and have been properly prepared in accordance with company legislation. An audit report which is prepared when the company’s auditors believe the accounts do not show a true and fair view and/or have not been properly prepared in accordance with company legislation. (1 mark) The preparation and filing of annual accounts by limited companies is a requirement of: International Accounting Standards Codes of corporate governance HM Revenue & Customs National legislation (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 7: Sys t e ms , c o n t ro ls an d c o mp l i an c e What is the name given to the term which signifies the rules (from company law, accounting standards (UK and International) and Stock Exchange requirements) which govern accounting? GAAP UITF FRRP IFRS (2 marks) 6 What is the name of the body that regulates the UK Accounting and Finance profession? Financial Responsibility Committee Financial Responsibility Council Financial Reporting Council (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 43 lOMoARcPSD|11199247 44 7: Sys t e ms , c o n t ro ls an d c o mp l i an c e A C C A BT Q ue s t ion Ba nk Multi task question QUESTION ONE Task 1 Identify whether an organisation’s monthly management accounts and annual financial accounts must comply with company law and/or accounting standards by completing the table below. Monthly management accounts Annual financial statements Company law Accounting standards (2 marks) Task 2 Identify whether the following tasks would be carried out by a business’s management accounting, financial accounting or treasury functions. Financial accounting Management accounting Treasury Investment appraisal Analysis of profit centre performance Arranging a bank overdraft facility Preparing forecasts of cash requirements (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 8: Co n t ro l , se c u ri t y a n d a u d i t Chapter 8: Control, security and audit Objective test questions 1 Which of the following statements about internal auditors is true? Internal auditors report on the truth and fairness of the accounts of the company that they are auditing and work for. Internal auditors report on the effectiveness of the internal control systems of the company that they are auditing, which is not the same company that they work for. Internal auditors report on the effectiveness of the internal control systems of the company that they are auditing and work for. Internal auditors report on the truth and fairness of the accounts of the company that they are auditing, which is not the same company that they work for. (2 marks) 2 The internal audit department of Salisbury plc should report to which of the following? The Finance Director of Salisbury plc The shareholders of Salisbury plc The Chief Executive of Salisbury plc The audit committee of the board of directors of Salisbury plc (2 marks) 3 Ben Beaumont conducts a systematic review of dispatch notes. Which of the following does the above test of control relate to? Distribution Credit limits Goods inwards (1 mark) 4 ABC Ltd has the following departments: Goods inwards, Purchasing, Stores, Production and Finance. The stores department has completed a purchase requisition in order to replenish Product X which is running low. An appropriate supplier of Product X will be found by which of the following departments? Goods inwards Purchasing Stores Production Finance (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 45 lOMoARcPSD|11199247 46 8: Co n t ro l , se c u ri t y a n d a u d i t 5 A C C A BT Q ue s t ion Ba nk What is the name given to a list of all the assets owned by an organisation and all the liabilities owed by the same organisation on a given date? Income statement Statement of financial position Net asset statement (1 mark) 6 The purchasing department is NOT responsible for which of the following procedures? Determining the best supplier for the goods requisitioned by the stores department. Ordering the goods requisitioned by the stores department from the most appropriate supplier of the goods. Negotiating a discount, if possible, with the supplier. Paying the supplier once the goods have been received. (2 marks) 7 The most important accounting control for detecting the occurrence of fraud and error in relation to the petty cash and the bank of an organisation is: Authorisation Custody Recording Reconciliation (2 marks) 8 Any action taken by management to enhance the likelihood that established objectives and goals will be achieved is known as what? Internal control Internal audit Internal check Internal review (2 marks) 9 The different types of internal controls in an organisation can be remembered by SOAPSPAM. The two Ps in this mnemonic stand for: P……………………………………………………….. P……………………………………………………….. (2 marks) 10 The different types of internal controls in an organisation can be remembered by SOAPSPAM. The O and the M in this mnemonic stand for: O……………………………………………………….. M……………………………………………………….. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11 8: Co n t ro l , se c u ri t y a n d a u d i t Are the following statements TRUE or FALSE? True False Internal audits are carried out for the purpose of reporting to the shareholders of an organisation. External audits examine the published accounts of an organisation and the report their findings in the form of an audit report. Internal audit is part of the external audit system Internal audit is part of the internal control system of an organisation. (2 marks) 12 If an auditor wishes to obtain evidence that the internal controls of an organisation are working satisfactorily, what sort of tests will he wish to carry out? Compliance tests Yes No Substantive tests (1 mark) 13 When carrying out an audit, what is the main aim of substantive testing? To reduce the amount of compliance testing if the substantive testing is successful. To identify any errors or omissions in the accounts. To provide evidence that the internal controls of the organisation are working effectively. To provide ‘value for money’. (2 marks) 14 Management audits, efficiency audits and ‘value for money’ audits are also known as: Compliance audits Systems audits Operational audits (1 mark) 15 ABC Audit Company are carrying out the audit of Elms & Co Ltd’s financial accounts. The audit manager asks the Finance Director of Elms & Co Ltd for evidence of the work of the internal auditors of the company. The Finance Director explains that they don’t bother writing down any of the internal audit work done by the internal audit department but explains the type of work that they do on a regular basis and that the results are sufficient to see that the control systems in place are working really well. Can the audit manager of the ABC Audit Company rely on the Finance Director’s assertions that control systems are working well and therefore reduce the amount of substantive testing required to be done? Yes No (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 47 lOMoARcPSD|11199247 48 8: Co n t ro l , se c u ri t y a n d a u d i t 16 A C C A BT Q ue s t ion Ba nk What is an audit trail? A system of protecting data from accidental or deliberate threats. A system which shows personnel who have accessed a computer system and logs any changes that have been made. A process whereby regular back-ups of data are made automatically. A method of auditing an organisation’s computer system by taking regular back-ups. (2 marks) 17 What is the primary purpose of an external audit? To review the work of the internal audit department. To carry out compliance and substantive tests. To report any errors in the accounting records to the shareholders. To give an opinion on whether the financial statements of an organisation give a true and fair view of the accounting records of the organisation. (2 marks) 18 Are the following statements TRUE or FALSE? True False Only internal auditors can review the controls of the organisation they are auditing. External auditors cannot rely on the work of internal auditors, but internal auditors can rely on the work of external auditors. External auditors can review the controls of the organisation they are auditing. External auditors can rely on the work of internal auditors provided that it has been proved worthy of having such reliance placed on it. (2 marks) 19 Which of the following groups/individuals are the internal auditors of an organisation likely to report to? Finance Director Audit Manager Board of directors Shareholders (2 marks) 20 Which of the following groups/individuals are the external auditors who are auditing an organisation likely to report to? Finance Director Audit Manager Board of directors Shareholders (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 21 8: Co n t ro l , se c u ri t y a n d a u d i t Which of the following is the reason substantive tests are used in the context of external audit of financial accounts? To establish whether a figure is appropriate To investigate why a figure is incorrect To assess whether a figure should be included To determine why a figure is excluded (2 marks) 22 ABC Co has a system which records details of orders received and goods despatched, invoices customers and allocates remittances to customers. What type of system is this? Management information system Decision support system Knowledge management system Transaction processing system (2 marks) 23 James conducts a systematic review of suppliers’ delivery notes. Which of the following does the above test of control relate to? Distribution Credit limits Goods inwards (1 mark) 24 Against which TWO of the following does cybersecurity protect? Disruption of business operations by misdirection of computer systems Theft of data held by the company by hackers Misuse of company data by employees Failure by employees to implement IT controls Downloaded by Chee Y (cheey990@gmail.com) 49 lOMoARcPSD|11199247 50 8: Co n t ro l , se c u ri t y a n d a u d i t A C C A BT Q ue s t ion Ba nk (2 marks) Multi task questions QUESTION ONE Background The management of Paulted Limited is reviewing the company’s computer systems after an attempted fraud. Managers are considering a number of additional controls to try to prevent fraud in the future. Task 1 Identify which of the following is a general control and which of the following is an application control. General Application Insisting staff change their password every 30 days Production of a list of all transactions processed for management review Forbidding staff to take laptops away from the company’s premises Limit checks on amounts input (2 marks) Task 2 Controls can be classified in a number of different ways. A commonly-used classification is as follows. A B C D E F G H Organisation Authorisation Personnel Segregation of duties Physical Arithmetic Supervisory Management Match the controls given below to a control type listed above. I Security staff being based at the main entrance to the company’s premises. II The main board of a company reviewing reports from divisional managing directors at every board meeting. III The company operating a bonus scheme that clearly links reward with extra effort. IV The main board of a company being required to approve major capital investment expenditure above a certain amount (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 8: Co n t ro l , se c u ri t y a n d a u d i t QUESTION TWO Background Phil and Jill carry out audit work at Hightower Limited. Phil is an employee of Hightower, whereas Jill is an employee of an accountancy practice that Hightower uses to audit its financial statements. Task 1 Identify which of Phil and Jill is the internal auditor. Phil Jill (1 mark) Task 2 State which of the following tasks would be the responsibility of Phil, which would be the responsibility of Jill, which would be the responsibility of both Phil and Jill and which would be the responsibility of neither. Phil Jill Both Neither Reviewing the security controls over Hightower’s IT systems Carrying out a value-for-money audit of Hightower’s operations. Signing the audit report on Hightower’s accounts Investigating possible theft of inventory from Hightower’s stores Reporting to Hightower’s management weaknesses in internal control found during the course of the audit work Assessing whether the financial statements comply with international financial reporting standards (3 marks) (Total = 4 marks) QUESTION THREE Task 1 Identify which of the following are purposes of compliance testing. Identifying errors and omissions in accounts Obtaining evidence that the internal controls of an organisation are working satisfactorily Purpose Not a purpose (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 51 lOMoARcPSD|11199247 52 8: Co n t ro l , se c u ri t y a n d a u d i t A C C A BT Q ue s t ion Ba nk Task 2 Identify which area of the business is likely to have the following controls in place. Bank and cash Purchasing Stores Credit control Comparison of bank paying-in slips against records of monies received Review of overdue accounts Comparison of invoices received with orders Dispatch of goods only on receipt of a sales order (2 marks) (Total = 4 marks) QUESTION FOUR Task 1 Identify the following as either an input to or output from a payroll system. Time sheets Input Output Payslips Payroll analysis Bonus details (2 marks) Task 2 The following staff work at Robotics plc. Andrew – Accountant Jenny – Credit Controller Aidan – Purchasing Manager Abdul – Stores Manager Which members of staff are involved in the purchase of material? Involved Not involved Andrew Jenny Aidan Abdul (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 8: Co n t ro l , se c u ri t y a n d a u d i t QUESTION FIVE Task 1 Which TWO of the following are controls designed to prevent intruders from PHYSICALLY accessing an organisation’s computer system? Control Fire alarm Keypad entry Water sprinklers Security guards (2 marks) Task 2 Are the following statements TRUE or FALSE? True False Internal audit is part of the external audit system. Work done by the internal audit department of a company can never be relied upon by the external auditors. External auditors are appointed by the Chief Executive of the company that is being audited. External auditors are appointed by the shareholders of the company that is being audited. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 53 lOMoARcPSD|11199247 54 9: I d e n t if yi n g and p re v e nt i n g f rau d A C C A BT Q ue s t ion Ba nk Chapter 9: Identifying and preventing fraud Objective test questions 1 What is the name given to the sales ledger fraud that involves cash or cheque receipts being stolen, with the theft being concealed by allocating subsequent receipts against the debt? Manipulation Collusion Teeming and lading Fictitious sales (2 marks) 2 The primary responsibility for preventing and detecting fraud lies with which of the following? Audit Committee Internal auditors External auditors Directors (2 marks) 3 What is the main reason that an employee would not enforce the company policy of writing off receivables of customers who are never going to pay? In order to overstate sales turnover In order to overstate the company’s year-end bank balance In order to overstate bad debts In order to overstate profits and net assets (2 marks) 4 Which of the following circumstances may indicate that fraud is likely to arise in an organisation? Tight rules and well-defined regulations Well-paid staff Few opportunities for collusion Failing to check references of new members of staff (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 9: I d e n t if yi n g and p re v e nt i n g f rau d Which of the following is NOT a common example of the ‘intentional misrepresentation of the financial position of an organisation’? Fictitious sales Overstating inventory Understating expenses Loss of assets (2 marks) 6 Identify whether the following statements are TRUE or FALSE. Window dressing of financial statements is where transactions are manipulated to make the statement of financial position look stronger. Opportunity is not a pre-requisite for fraud. True False (2 marks) 7 Which of the following will NOT happen if the financial results of an organisation are intentionally understated? 8 The share price might fall Shareholder returns may be higher than they should be The organisation may be refused loan finance Suppliers may offer less favourable credit terms to the organisation based on the financial results (2 marks) The fraud most likely to occur in the area of sales is: Teeming and lading Collusion Intentional misrepresentation (1 mark) 9 With regards to money laundering, it is an offence to fail to disclose knowledge or suspicion of money laundering. Failure to make a S…………………………… A…………………………… R…………………………… (SAR), on an SAR form, disclosing knowledge or suspicion of money laundering’…is a crime. The words that best complete the sentences above are: Statutory Activity Report Suspicious Action Report Statutory Action Report Suspicious Activity Report (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 55 lOMoARcPSD|11199247 56 9: I d e n t if yi n g and p re v e nt i n g f rau d 10 A C C A BT Q ue s t ion Ba nk The criminal offence of under or over valuing invoices in order to disguise the movement of money would take place in which phase of the money laundering process? Phase of money laundering process Placement Layering Integration (1 mark) 11 Fred’s accountant is suspicious that his client, Fred, is involved in money laundering. If the accountant were to alert Fred to this fact, which category/ies of money laundering offence would the accountant be committing? Laundering Yes No Failure to report Tipping off (2 marks) 12 If the employees of a company aim to defraud the business they work for by working with its customers in order to manipulate the quantity of goods despatched, the name given to this fraudulent activity is: Teeming and lading Collusion Intentional misrepresentation (1 mark) 13 Which of the following should be considered first in order to establish an effective internal control system that will minimise the prospect of fraud? Recruitment policy and checks on new personnel Identification of areas of potential risk Devising appropriate sanctions for inappropriate behaviour Segregation of duties in critical areas (2 marks) 14 In order to comply with Money Laundering Regulations, lawyers, accountants and certain other professionals must keep records of transactions for how many years? 3 5 6 (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 14 9: I d e n t if yi n g and p re v e nt i n g f rau d A form which is completed in order to disclose any knowledge or suspicion of money laundering is known as what? A Suspicious Disclosure Form A Serious Disclosure Form A Suspicious Activity Report A Serious Activity Report (2 marks) 16 Which TWO of the following are reasons for understating profits and/or net assets of a company? In order to force the share price of the company up so that shares can be sold above market value. In order to privately purchase a business asset at below market value. In order to pay HM Revenue & Customs less tax than the company is actually liable for. In order to improve the chances of receiving a much-needed loan from the bank. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 57 lOMoARcPSD|11199247 58 9: I d e n t if yi n g and p re v e nt i n g f rau d A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Background Organisations must have procedures in place to prevent money laundering. Task 1 Rank the stages of money laundering 1,2,3 in the order in which they occur: Layering Integration Placement (2 marks) Task 2 Select the appropriate control from the list below to fill in the gaps in the guidance about money laundering. A B C D Management authorisation Record retention Induction and training Internal audit All employees must be made aware of the forms money laundering can take and the offences under the money laundering legislation through 1______ procedures. If queries are raised about suspicions transactions, it is essential that organisations have 2 _____ procedures in place to be able to answer them. (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Which of the following are prerequisites that make fraud a possibility? Dishonesty Prerequisite Not a prerequisite Motivation Manipulation Opportunity (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 9: I d e n t if yi n g and p re v e nt i n g f rau d Task 2 Money laundering is the process of making the proceeds of a crime appear to be legitimate. The process usually comprises three distinct phases: I II III Placement Layering Integration Complete the following table: The transfer of money from business to business, or place to place, in order to conceal its initial source. The initial disposal of the proceeds of criminal activity into an apparently legitimate business activity or property. I II III (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 59 lOMoARcPSD|11199247 60 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams A C C A BT Q ue s t ion Ba nk Chapter 10: Leading and managing individuals and teams Objective test questions 1 What is the difference between responsibility and authority? 2 Responsibility is the right a person has to do something whereas authority is the liability of a person to carry out their duties Responsibility is the liability a person has to carry out their duties whereas authority is the right a person has to do something Responsibility is the liability a person has to carry out their duties whereas authority is the ability a person has to do something (1 mark) Which of the following management functions listed in the table below represent the FIVE that were classified by Henri Fayol? Management function Planning Motivating Co-operating Commanding Controlling Communicating Organising Co-ordinating (2 marks) 3 Who is responsible for the scientific management movement in the USA, arguing that management should be based on ‘well-recognised, clearly-defined and fixed principles’? Henri Fayol F W Taylor Elton Mayo Peter Drucker (2 marks) 4 According to Peter Drucker, the main objective of the manager of an organisation is which ONE of the following? Planning Organising Commanding Economic performance (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Which of the following are managerial roles as described by Mintzberg? Operational, decisional and interpersonal Informational, operational and decisional Interpersonal, informational and operational Interpersonal, informational and decisional (2 marks) 6 Is the following statement TRUE or FALSE? Elton Mayo was the founder of the Human Relations Movement. True False (1 mark) 7 Which style theory of leadership involves: tells; sells; consults; and joins? ……………………………………………………………………………….. Model (1 mark) 8 According to Blake and Mouton’s Managerial Grid, a manager who is lazy and has no interest in staff or work results in a managerial style that is described as: Country Club Impoverished Middle of the Road Team (2 marks) 9 Management involves which TWO of the following? Focusing on people Doing the right things Doing things right Maintaining rather than developing (2 marks) 10 The ability to do something, regardless of whether you have the authority or not, is known as: Right Power Responsibility Obligation (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 61 lOMoARcPSD|11199247 62 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams 11 A C C A BT Q ue s t ion Ba nk The distinction between management and leadership was put forward by _______, who argued that they were two separate sets of actions: management = coping with complexity and leadership = coping with change. Which of the following names most accurately completes the paragraph above? Mintzberg Heifetz Kotter Bennis (2 marks) 12 According to Mintzberg, the interpersonal managerial role does NOT involve which of the following tasks? Spokesperson Leader Liaison (1 mark) 13 The following are four styles of management identified by Blake and Mouton: 1 2 3 4 Team Middle of the road Country club Authoritarian Which of the following are the most task efficient managerial styles as suggested by Blake and Mouton? 1 and 3 2 and 4 1 and 4 2 and 3 (2 marks) 14 With reference to the managerial grid of Blake and Mouton, the ‘Dampened Pendulum’ managerial style is also known as: Country Club Impoverished Middle of the Road Team (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Multi task questions QUESTION ONE Task 1 Which TWO of the following are variables in Blake and Mouton’s Managerial Grid? Concern for people Concern for results Concern for task Concern for financial reward (2 marks) Task 2 Are the following statements regarding the Fiedler Contingency Model TRUE or FALSE? True False Statement 1 Task-orientated leadership is advisable in a crisis Statement 2 There is no ideal leader, different leaders will do well in different situations (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Leadership involves which TWO of the following? Asking what and why Overly concerned with short-term issues Challenging the status quo Focusing purely on the bottom line (2 marks) Task 2 Complete the Blake and Mouton Managerial grid with the words High or Low Concern for task Concern for team Country club Team Authoritarian Impoverished (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 63 lOMoARcPSD|11199247 64 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams A C C A BT Q ue s t ion Ba nk QUESTION THREE Background Marcus is leading a multi-disciplinary work team overseeing the development of a new accounting system. He recruited representatives from each section in the finance directorate. He finds that the team starts to work well but gradually fails to deliver viable options. Team meetings deteriorate into arguments as to who is responsible for what. There is no clear sense of direction. No one seems to take responsibility for the investigation of new options. No one seems to be assessing progress at each meeting. Task 1 Which TWO of the following are included in Fayol’s five functions of management? Organising Communicating Commanding Monitoring Implementing (2 marks) Task 2 Identify which of the following failures Marcus is responsible for. Failure to ensure effective team management Failure to allow the team enough time to develop Responsible Not responsible (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Objective test questions (1) Recruitment and selection 1 Which of the following is NOT an advantage of advertising internally in an organisation, via noticeboards, intranet and email? Candidates will be known to the organisation Opportunities will be created Cost may be higher than other methods It is less time consuming than external advertising (2 marks) 2 Put the following stages of the recruitment process into the correct order. Recruitment process stage First Second Third Advertise job internally Identify need for new recruit Prepare job description (1 mark) 3 Which of the following would NOT be classified as a type of advertising medium? Job advertisement National newspaper Local radio Intranet (2 marks) 4 Which of the following is a disadvantage of using recruitment consultants in order to fill a vacancy in an organisation? Their view of candidates is not biased They don’t save time in the recruitment process The fee may be the most important thing (1 mark) 5 Interviewers may use a range of different techniques when asking candidates questions. Questions that begin with ‘What, When, Where or Why’ are known as what type of question? Probing Open Closed Leading (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 65 lOMoARcPSD|11199247 66 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams 6 A C C A BT Q ue s t ion Ba nk Which TWO of the following would be disadvantages of interviews as a method of selection? The interview is only as good as the interviewer Non-verbal communication can also be assessed Assessment is subjective They are flexible (2 marks) 7 Identify whether the following are advantages or disadvantages of the group selection method of recruiting new staff in an organisation. Advantage Disadvantage The impact of team work can be identified Decisions may be divided Time consuming and expensive Management skills can be identified (2 marks) 8 Which of the following selection tests is NOT a type of aptitude test? Verbal reasoning test Spatio-visual ability test Personality test Physical test (2 marks) 9 Which of the following is NOT a limitation of selection testing? 10 Interpretation of test results requires skill Tests will often contain bias There is not always a strong correlation between test results and the ability to do a job It is standardised (2 marks) Which TWO of the following are methods used in group selection? Case studies Role-play exercises Interview (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Which of the following is the term used to describe the process of understanding the roles within the organisation? Job analysis Job specification Job requisition (1 mark) 12 Adele has just started a new job at ABC Inc. She is reading through her new job description on her first day to familiarise herself with its contents. Which TWO of the following would be contained within her job description? Job title Her annual salary Her annual holiday entitlement Who she reports to (her line manager) (2 marks) 13 Which type of interview is the most common selection method used by most organisations? One-to-one interviews Panel interviews Group assessments (1 mark) 14 Which type of intelligence is routinely examined by IQ tests? Emotional Spatial Practical Analytical (2 marks) 15 Which of the following is the most important advantage for an employer who uses face-to-face interviews in preference to other recruitment techniques? It is quick, easy and inexpensive to organise It is an opportunity to assess interpersonal skills It is easy to agree on the best candidate Candidates perform best when questioned directly (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 67 lOMoARcPSD|11199247 68 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Which TWO of the following are NOT methods used in group selection/assessment centres? References Case studies Role play exercises Interview (2 marks) Task 2 Which TWO of the following are disadvantages of group selection/assessment centres? They can take a long time They can be expensive They give longer exposure to the candidates They can identify management skills (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Rank the following stages of the recruitment process 1-8 (where 1 is the first thing) in the order in which they should occur (for a standard job). Arrange external advertising Prepare particulars of the job Request references Check the budget exists to recruit Conduct interviews Identify selection criteria Investigate need for new post Decide how to find applicants (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Task 2 Identify which selection method has which of the following advantages. Application forms Interviews Selection testing Consultants Provides factual information in standard form Allows assessment of nonverbal communication Provides external view of candidates Provides objective assessment of intelligence and aptitude (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Identify whether the following are part of the recruitment or selection process. Contracting an agency to headhunt a new Chief Executive for an organisation Carrying out the first and second interviews before appointing the new Chief Executive of an organisation Recruitment Selection (2 marks) Task 2 Which TWO of the following might be carried out in order to select potential new recruits for an organisation? Checking references Drawing up a job advertisement Writing a job description Reviewing results of aptitude tests (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 69 lOMoARcPSD|11199247 70 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams A C C A BT Q ue s t ion Ba nk Objective test questions (2) Diversity and equal opportunities 1 If one member of staff uses abusive language and behaves in a threatening way towards another member of staff, then what sort of action is said to be taking place? Direct discrimination Indirect discrimination Victimisation Harassment (2 marks) 2 Which TWO of the following are types of discrimination? Open discrimination Closed discrimination Direct discrimination Victimisation (2 marks) 3 If Employee A is treated less favourably than Employee B because Employee A has given evidence to support Employee C’s complaint about discrimination, then what is taking place in this situation with regards to Employee A? Direct discrimination Indirect discrimination Victimisation Harassment (2 marks) 4 What type of gender discrimination is said to be taking place if an employer offers less favourable terms of employment to part-time workers? Direct discrimination Indirect discrimination Victimisation (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams Anna attends a final job interview at XYZ Ltd in which she is asked whether she has any plans to start a family in the near future. On the way home on the train she bumps into the other candidate and they start chatting about their respective interviews. Anna soon realises that this candidate, who is male, was not asked any such questions about whether he had any plans to start a family. Anna is not successful in getting the job because she is less qualified than the male candidate (who does get the job). Which of the following statements are correct? I There appears to have been sexual discrimination against Anna by XYZ Ltd and Anna would be successful in her claim II There appears to have been sexual discrimination against Anna by XYZ Ltd and Anna would not be successful in her claim III There does not appear to have been any sexual discrimination taking place at all I only II only III only None of the statements are true (2 marks) 6 In which of the following situations is positive discrimination permitted? Advertising a job in a language in which a high proportion of this ethnic group is unemployed Selecting half of the managers in an organisation based on the fact that they are women only Additional training provided for certain employee groups where there is a requirement Employing an equal number of men and women (2 marks) 7 Kate is a 28-year old entrepreneur who wants to employ an assistant. She therefore only wants to employ someone who is aged 21-25 as she thinks it will be awkward instructing and supervising someone who is older than her. She places an advert in the local paper, specifying that suitable candidates will be aged 21-25 and a ‘recent graduate’. Her friend Martin tells her that he thinks she might be in breach of age discrimination. Is Martin’s opinion on the matter TRUE or FALSE? Specifying 21-25 years old in the advert is age discrimination True False Specifying ‘recent graduate’ in the advert is age discrimination (1 mark) 8 If people from a certain ethnic group are encouraged to apply for a particular job, this is an example of which of the following? Direct discrimination Indirect discrimination Positive discrimination Positive action (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 71 lOMoARcPSD|11199247 72 10: L e ad i n g an d man agi n g i n d i v i d u al s an d t e ams A C C A BT Q ue s t ion Ba nk Multi task question QUESTION ONE Background Jim Bloggs is advertising for a new accounts assistant in his office and has specified in his advert the following: ‘Accounts assistant required, 30-40 years old, male, previous experience considered to be an advantage.’ Task 1 This advertisement is an example of which type of discrimination? Discrimination on the grounds on sex Direct Indirect Discrimination on the grounds of age (2 marks) Task 2 Are the following statements TRUE or FALSE? Diversity in the workplace is the same as equal opportunities True False Discrimination relating to sex, race and disability are governed by law (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11: I n d i v i d u al s, g ro u ps an d t e ams Chapter 11: Individuals, groups and teams Objective test questions 1 Which of the following is NOT a basic component of attitudes? Context Positive feelings Negative feelings Volition (2 marks) 2 Are the following statements about groups and teams TRUE or FALSE? A group is a collection of individuals who are in the same vicinity but who do not interact with each other A team is a collection of individuals who interact with each other but who are not linked by a common purpose True False (2 marks) 3 Which TWO of the following are limitations of team working? Ideas are not pooled Information is not shared Delayed final decision Conflict (2 marks) 4 According to Belbin (in 1988), how many roles are there in an effective team? Seven Nine Eleven (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 73 lOMoARcPSD|11199247 74 11: I n d i v i d u al s, g ro u ps an d t e ams 5 A C C A BT Q ue s t ion Ba nk Adam is a team member of one of the teams at FGH plc and he is known for his attention to detail and for always reading the small print at the end of any of the documents that he is required to study. Some of his fellow team members tease him for being so diligent as they only really believe in getting an ‘overview’ of what individual documents are trying to convey. What role (according to Belbin) has Adam assumed in his team? Specialist Resource investigator Monitor Evaluator Completer Finisher (2 marks) 6 According to Belbin, which TWO of the following contributions are most likely to be made by the team member who assumes the role of ‘plant’? Problem solver Thrives on pressure Concerned with fairness and equity Ignores details (2 marks) 7 Bruce Wayne Tuckman identified four distinct developmental stages that teams go through (Forming, Storming, Norming and Performing). Identify which stage the following descriptions relate to. Forming Storming Norming Team members behave relatively independently at this stage Team members put forward their ideas for the rest of the team to consider at this stage Team members begin to trust each other at this stage (2 marks) 8 Which of the following attributes does a group have that a random collection of individuals does not? Identity Leadership Resources (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 9 11: I n d i v i d u al s, g ro u ps an d t e ams Team effectiveness can be evaluated in a number of ways: it can be evaluated by assessing both quantitative and qualitative factors. Identify whether the following statements relate to an effective team or an ineffective team. Quantitative factor Labour turnover is high Effective Ineffective Absenteeism is high Output and productivity is high (2 marks) 10 Teams which are made up of individuals from many different departments within an organisation are known as what? Project team Multi-skilled team Multi-disciplinary team (1 mark) 11 Richard is a highly enthusiastic member of his team. An extrovert by nature, he is curious and communicative. He responds to new challenges positively and has a capacity for contacting people, exploring anything new. However, his attention span is short and he tends to become less involved in a task once his initial interest has passed. According to Belbin’s team roles theory, Richard displays the characteristics of which of the following? Monitor-evaluator Plant Resource-investigator Company worker (2 marks) 12 Team effectiveness can be evaluated in a number of ways: it can be evaluated by assessing both quantitative and qualitative factors. Identify whether the following statements relate to an effective team or an ineffective team. Effective Ineffective Team members are suspicious of each other High quality of output is produced Individual targets are achieved (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 75 lOMoARcPSD|11199247 76 11: I n d i v i d u al s, g ro u ps an d t e ams 13 A C C A BT Q ue s t ion Ba nk According to Bruce Wayne Tuckman, teams go through four distinct developmental stages. A team which is going through the following is in the middle of which stage? Team members adjust their behaviour towards each other as they develop work habits that make teamwork seem more natural and fluid Team members begin to trust one another Motivation increases as the team become more acquainted with the project Forming Storming Norming Performing (2 marks) 14 When an individual’s behaviour changes in order to be consistent with the group norm, what is this known as? Consistence Compliance Conformity Obedience (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11: I n d i v i d u al s, g ro u ps an d t e ams Multi task questions QUESTION ONE Task 1 Belbin identified nine roles in an effective team. A B C D E F G H I Plant Resource Investigator Chairman Shaper Monitor-Evaluator Team worker Implementer Completer-Finisher Specialist Match the description given below to the team role identified by Belbin. I Team member who knows how the resources the group needs can be provided II Team member who possesses the drive and courage to overcome obstacles III Team member who turns decisions into systems, processes and tasks that will produce what the team wants IV Team member whose primary concern is for effective interpersonal relations within the team (2 marks) Task 2 Bruce Wayne Tuckman identified four distinct developmental stages that teams go through. Identify which stage the following descriptions describe. Forming Storming Norming Performing Different ideas compete for consideration. Team members tend to behave quite independently. Team members are expected to take more responsibility for making decisions and for their professional behaviour. Team members are now competent, autonomous and able to handle the decision-making process without supervision. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 77 lOMoARcPSD|11199247 78 11: I n d i v i d u al s, g ro u ps an d t e ams A C C A BT Q ue s t ion Ba nk QUESTION TWO Background Belbin identified nine roles in an effective team. A B C D E F G H I Plant Resource Investigator Chairman Shaper Monitor-Evaluator Team worker Implementer Completer-Finisher Specialist Task 1 Match the description given below to the team role identified by Belbin. I II III IV Team member who makes every effort to see and judge all options accurately Team member who uses creativity and imagination to solve difficult problems Team member whose primary concern is meeting deadlines Team member who is highly motivated by the challenges and the pressures of the tasks (2 marks) Task 2 Identify which TWO of the following are advantages of teamworking. Teamworking can be used to combine the skills of different individuals. Teamworking can facilitate communication between different business functions. Teamworking ensures that the best decisions for the organisation are made. The consensus and cohesion involved in teamworking can ensure that time is not spent considering alternative strategies. (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Which TWO of the following are attributes of interpersonal intelligence as part of Teamworker in Belbin’s effective team model? Empathy Co-operation Managing stress Self-control (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11: I n d i v i d u al s, g ro u ps an d t e ams Task 2 Are the following statements about the stages teams go through as they develop TRUE or FALSE? Adjourning is when a team becomes complacent about the task that it is performing True False Dorming is when a team has finished one task and is waiting to commence the next one (2 marks) (Total = 4 marks) QUESTION FOUR Background Team effectiveness can be evaluated using both quantitative and qualitative methods. Team BIG at a large organisation has recently had its team effectiveness evaluated. Qualitative results revealed the following: Stoppages were high Opinions were imposed on team members Ideas were kept from other team members Feedback was undermining Task 1 Are the following statements TRUE or FALSE? Team BIG is performing as an effective team Based on the above information, it is not possible to make a preliminary assessment of team BIG’s performance True False (2 marks) Task 2 Which TWO of the following qualitative factors might indicate Team BIG is operating ineffectively? High absenteeism from team meetings Poor understanding of individual roles within the team Willingness to share ideas Free communication within the team (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 79 lOMoARcPSD|11199247 80 11: I n d i v i d u al s, g ro u ps an d t e ams A C C A BT Q ue s t ion Ba nk Objective test questions (1) Motivating individuals and groups 1 Theories of motivation can be classed as either content or process theories. Identify the questions asked that distinguishes the theory type. Content Theory Process Theory What things are individuals motivated by? How can individuals be motivated? (2 marks) 2 Which of the following would NOT fit into ‘Physiological needs’ according to Maslow’s hierarchy of needs? Warmth Food Shelter Affection (2 marks) 3 According to Herzberg’s ‘Motivation-Hygiene’ Theory, which TWO of the following would be classed as motivation factors? Annual salary and bonus Job security Responsibility Promotion (2 marks) 4 Which of the following is NOT one of the three ways that Herzberg suggested could make jobs more interesting for an individual? Job security Job enrichment Job rotation (1 mark) 5 Are the following statements relating to Maslow’s hierarchy of needs TRUE or FALSE? The most primitive need is ‘Safety’ and it is at the bottom of the pyramid True False Self-actualisation is the easiest need to satisfy (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6 11: I n d i v i d u al s, g ro u ps an d t e ams According to Vroom’s expectancy theory, as an employee becomes more confident about what is achievable, what will happen? Their motivation will decrease Their motivation will increase Their valence will increase Their valence will decrease (2 marks) 7 If F = Motivation force, V = Valence and E = Expectancy, which of the following equations correctly represents Vroom’s expectancy theory? V=F×E V = E/F F=V×E F = V/E (2 marks) 8 According to Douglas McGregor’s X-Y Theory, which TWO of the following does the Theory X manager believe? Employees are happy to accept and seek responsibility The average employee dislikes work and will avoid it where possible Most employees must be forced to work towards an organisation’s objectives (1 mark) 9 According to Herzberg, a vertical extension of an individual’s job which leads to increased levels of responsibility and provides greater challenges is known as what? Job enrichment Job rotation Job enlargement (1 mark) 10 Which of the following will NOT determine how much an individual is paid? Market rates Job content Job performance by an individual Job enlargement (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 81 lOMoARcPSD|11199247 82 11: I n d i v i d u al s, g ro u ps an d t e ams 11 A C C A BT Q ue s t ion Ba nk An individual’s pay may be enhanced by PRP (Performance Related Pay). Fred works on the production line at ToastersRUS factory and is paid a fixed amount per toaster completed. The type of scheme where an employee is paid a fixed amount per unit produced is known as what? Piecework scheme Group bonus scheme Profit-sharing scheme Points scheme (2 marks) 12 According to Herzberg’s two factor theory, which ONE of the following is the most important of the hygiene factors? Company policy and administration Job security Pay and benefits Relationship with co-workers (2 marks) 13 Abdul has a team of staff working for him and his style of management could easily be described as ‘authoritarian’. He believes that all of his staff members dislike work and avoid it whenever they can and he has to threaten them with punishments in order to get them to work towards organisational objectives. Abdul’s approach to managing his team is described by which motivational theorist? Vroom McGregor Maslow Herzberg (2 marks) 14 In order to motivate its employees, a large computer company offers promotion to its sales staff if they meet their sales targets. One of the members of the sales team, Bridget, sees this as highly attractive (Valence = +0.90) but her portfolio of clients and past performance mean that the sales target will be almost impossible (Expectancy = 0.1). Using Vroom’s formula, what is Bridget’s motivational force? Answer = …………………………………………………………….. (1 mark) 15 According to Herzberg, a horizontal extension of a job which leads to an increase in the number of operations carried out by an individual and reducing the number of repetitive tasks is known as what? Job enrichment Job rotation Job enlargement (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 16 What is meant by ‘valence’ in Vroom’s expectancy theory? 17 11: I n d i v i d u al s, g ro u ps an d t e ams The strength of an individual’s belief that acting in a certain way will obtain the desired outcome The strength of an individual’s preference for a given outcome The values an individual applies to the motivation decision The strength of an individual’s motivation to act in a certain way (2 marks) According to Douglas McGregor’s X-Y Theory, which ONE of the following is NOT a characteristic of the Theory X manager? One-way communicator Tolerant Poor listener (1 mark) 18 When a person engages in an activity for its own sake, for example, a hobby, where there isn’t any obvious external incentive present, this is known as what? Intense motivation Intrinsic motivation Extrinsic motivation (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 83 lOMoARcPSD|11199247 84 11: I n d i v i d u al s, g ro u ps an d t e ams A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Which of the following features of an individual’s job are motivators or hygiene factors as identified by Hertzberg? Motivator Hygiene Competitive salary Comfortable office Opportunity to mentor new staff One-off year-end bonus to reward contribution during the year (2 marks) Task 2 Which of the following beliefs are characteristic of the Theory X school of management identified by McGregor and which are characteristic of the Theory Y school? Theory X Theory Y Individuals will naturally direct their work towards meeting organisational objectives. Individuals are naturally resistant to change. Most individuals do not seek advancement within the organisation. Individuals need to be told clearly the sanctions they will face if they do not perform adequately. (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Maslow’s theory assumes we all have similar needs and react in a similar way. Which TWO of the following fit into the category ‘Esteem needs’? Receiving excellent references from your employer when you apply for a new job due to a house move Meeting friends at the pub on a Friday night after a busy week Coming top in your Accountancy examinations Reading a book (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 11: I n d i v i d u al s, g ro u ps an d t e ams Task 2 Identify whether the following theories are content or process theories, by completing the table below. Content Theory Process Theory McGregor’s X-Y Theory Maslow’s hierarchy of needs Herzberg’s Motivation-Hygiene Theory Vroom’s Expectancy Theory (2 marks) (Total = 4 marks) QUESTION THREE Background According to Vroom, Force or Motivation = _______ × _______ Task 1 Identify which TWO of the following words complete Vroom’s equation. 1 2 3 4 Valence Opportunity Expectancy Needs (2 marks) Task 2 Consider the following statements that relate to Maslow’s hierarchy of needs and identify whether they are TRUE or FALSE. True False Affection is a physiological need. Relationships are a social need. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 85 lOMoARcPSD|11199247 86 12: T rai n i n g a n d d e v e l op me n t A C C A BT Q ue s t ion Ba nk Chapter 12: Training and development Objective test questions 1 Which of the following is NOT one of the benefits that learning brings to the workplace? Increased productivity Better staff retention Higher motivation Increased staff costs (2 marks) 2 John is an employee of ABC Ltd and is a member of the Marketing Department. He is quite a cautious team member who often takes a back seat during meetings. He prefers to sit back and observe what everyone has to say before collecting his thoughts and coming to a firm conclusion about what he thinks of a new project. John’s most likely learning style is which of the following? Activist Reflector Theorist Pragmatist (2 marks) 3 According to Honey and Mumford, which TWO of the following are typical of those individuals with a pragmatist’s learning style? Think through problems logically Collect and analyse data and are slow to reach conclusions Search for new ideas and keen to experiment Act quickly and confidently on ideas and get straight to the point in a discussion (2 marks) 4 According to Armstrong, training is the planned and systematic modification of WHAT, through learning events, programmes and instruction which enables individuals to achieve the level of knowledge, skills and competence to carry out their work effectively? Potential Ability Behaviour Knowledge (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 5 12: T rai n i n g a n d d e v e l op me n t Identify the correct definitions of Development and Education in the table shown below. Knowledge acquired gradually by instruction and learning The growth or realisation of an individual’s potential and ability through the provision of learning and educational experiences Development Education (1 mark) 6 Which TWO of the following are benefits of training and development to the employees of an organisation? Increased skills More interesting work Cheaper than buying in skills (1 mark) 7 Put the four stages of Kolb’s experiential learning theory into the correct order. Acting First Second Third Fourth Thinking Experiencing Reflecting (2 marks) 8 According to Kolb, different people naturally prefer a different learning style. Each preferred learning style is a product of how to approach a task (watching or doing) and the emotional response to the experience (thinking or feeling). A combination of ‘doing’ and ‘feeling’ produces the preferred learning style known as which of the following? Accommodating Diverging Converging Assimilating (2 marks) 9 According to Kolb, an individual who has a concise and logical approach to learning, whose ideas and concepts are more important than people and who prefers reading, lectures, exploring analytical models and having time to think things through can be described as having which of the following preferred learning styles? Accommodating Diverging Converging Assimilating (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 87 lOMoARcPSD|11199247 88 12: T rai n i n g a n d d e v e l op me n t 10 A C C A BT Q ue s t ion Ba nk The training and development process in an organisation involves a number of steps. Identify which of the following statements regarding these steps are TRUE and which ones are FALSE. The first stage in the training and development process is to set objectives for the skills and competences required to fulfil the overall strategy The final stage in the training and development process is to check to ensure that the objectives have actually been met True False (2 marks) 11 Which ONE of the following is NOT a role of the Human Resources Department in an organisation? Agree objectives with staff Provide rewards Pay salaries (1 mark) 12 An individual who prefers an ‘assimilating’ learning style will be NOT be comfortable in which of the following situations? Exploring analytical methods Having time to think things through Being thrown in as the deep end without notes and instructions Organising wide-ranging information into a clear and logical format (2 marks) 13 The experiential learning theory was developed by whom? Kolb Honey and Mumford (1 mark) 14 Which TWO of the following are benefits that learning can bring to the workplace? Increased productivity Decreased costs Greater staff flexibility Higher staff turnover (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 15 12: T rai n i n g a n d d e v e l op me n t An individual whose preferred learning style could be described as ‘Pragmatist’ would be comfortable in which TWO of the following situations? Putting ideas and theories into practice Acting quickly and confidently on ideas and ‘getting straight to the point’ Standing back and observing Seeking to centre activity around themselves (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 89 lOMoARcPSD|11199247 90 12: T rai n i n g a n d d e v e l op me n t A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Task 1 Which TWO of the following are benefits of training and development to the employees of an organisation? Increased flexibility Better performance at work Improved staff retention Self confidence (2 marks) Task 2 Which TWO of the following are benefits of training and development of employees to an organisation? Increased employability Reduced employment cost Improved performance of staff Staff job satisfaction (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Honey and Mumford developed a learning style questionnaire designed to determine a person’s preferred learning style. Match up the following learning styles with the correction description of how they learn. Activists Conclude Do Review Plan Reflectors Theorists Pragmatists (2 marks) Task 2 Kolb’s preferred learning style ‘converging’ is a product of which TWO of the following choices? Doing Watching Feeling Thinking (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 12: T rai n i n g a n d d e v e l op me n t QUESTION THREE Task 1 According to Honey and Mumford, which TWO of the following are NOT typical of individuals with a theorist’s learning style? 1 2 3 4 Think through problems logically Prefer principles, models and systems thinking Immerse themselves fully in new experiences Open-minded, enthusiastic and flexible (2 marks) Task 2 Match the descriptions of the method of learning described below to the learning styles described by Kolb. Diverging Assimilating Converging Accommodating Amrish requires clear explanations and organises information received in clear formats. Helga develops by solving problems and finding practical uses for theories. Yen-pei prefers to work in groups so that she can understand varying perspectives of different people. Jaitinder prefers to act on instinct and intuition rather than logic and analysis. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 91 lOMoARcPSD|11199247 92 12: T rai n i n g a n d d e v e l op me n t A C C A BT Q ue s t ion Ba nk Objective test questions (1) Performance appraisal 1 Which of the following is NOT an aim of performance assessment? Identify employee training needs On-the job training Give feedback on performance to employees Form a basis for decisions regarding an employee’s annual salary (2 marks) 2 Management by Objectives is a method of assessing the performance of human resources and it involves four steps. Put the following steps in the correct order of operation. First Second Third Fourth Agree feedback Agree resources Agree rewards Agree objectives (2 marks) 3 Management by objectives is often achieved using set targets and introduced the SMART criteria. The objective ‘M’ in the SMART criteria stands for which ONE of the following? Monitored Measurable Manageable (1 mark) 4 Ivor is preparing for his annual appraisal with his line manager. The company that he works for, MR Ltd, has just introduced a system of appraisal that includes the appraisee receiving feedback from anyone who comes into contact with him, including his peers, managers, customers and suppliers. This type of appraisal system is known as what? 360 degree appraisal Self- appraisal Formal appraisal (1 mark) 5 Which of the following is NOT a benefit of a performance appraisal to an organisation? Get to know employees Improved communication Receive feedback Understand organisational goals (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6 12: T rai n i n g a n d d e v e l op me n t Which TWO of the following are NOT barriers to effective appraisal? Allocate more time in case appraisal overruns Appraisal focused on pay and benefits Train managers to conduct honest appraisals Employees behave defensively (2 marks) 7 During his appraisal, Alistair’s line manager feeds back his strengths and weaknesses to him and then explains why his criticism of him is justified. He tells Alistair how he should go about trying to improve the situation (which gave rise to the criticism), but does not offer any suggestions or guidance to him. This appraisal technique is most accurately described as which of the following? ‘Tell and sell’ technique ‘Tell and listen’ technique ‘Problem-solving’ technique (1 mark) 8 In relation to performance appraisal, which of the following statements are TRUE? I Performance appraisals identify employees’ training needs II Performance appraisals are important because, as identified by the ‘Hawthorne effect’, employees who are noticed perform better III One of the main aims of individual performance appraisals is for feedback to be given by employees to employers I and II only I and III only II and III only I, II and III (2 marks) 9 Anne is in attending her annual performance appraisal and her line manager, Mr White, has asked her to complete a form in which she assesses his performance as her manager. Once she has completed it, she hands it back to him for review. What is this type of appraisal known as? Upward appraisal Downward appraisal Vertical appraisal (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 93 lOMoARcPSD|11199247 94 12: T rai n i n g a n d d e v e l op me n t 10 A C C A BT Q ue s t ion Ba nk Which of the following is NOT one of the general criteria used to evaluate an appraisal scheme? Relevance Fairness Co-operation Subjectivity (2 marks) 11 The performance of human resources at AAA Ltd is assessed by agreeing the following: Rewards Feedback Resources Objectives What is this technique commonly known as? Management by Rewards Management by Feedback Management by Resources Management by Objectives (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c a t i o n Chapter 13: Personal effectiveness and communication Objective test questions 1 Which of the following is NOT one of the key principles of time management? Focus Urgency Organisation Production (2 marks) 2 One of the key principles of time management is ‘goals’. In order to be useful, such goals need to be SMART. What does the ‘R’ in SMART represent? R = …………………………………………………………………………………… (1 mark) 3 Peter is a trainee at ABC Ltd and he has been put under the guidance of Andrew, a more experienced employee whose job it is to show Peter how to perform tasks. The job that Andrew is performing is that of: Mentor Counsellor Coach Personal Development Officer (2 marks) 4 Sarah is helping Anne to work through some of the problems that she is experiencing at work. Sarah believes that the best course of action is for her to help Anne to identify and explore her issues and then to come up with her own solutions. Sarah is said to be taking on the role of: Mentor Counsellor Coach Personal Development Officer (2 marks) 5 George is Fred’s line manager and has asked Fred to produce a report which details the sales figures for the last quarter. Fred produces the report by the end of the week as requested. What is the direction of the communication between Fred and George? Horizontal Diagonal Vertical (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 95 lOMoARcPSD|11199247 96 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c at i o n 6 A C C A BT Q ue s t ion Ba nk According to Leavitt, which TWO of the following statements relating to communication patterns is true? The wheel communication pattern solves problems the slowest. The circle communication pattern solves problems the slowest. The lowest job satisfaction is associated with the wheel communication pattern. The highest job satisfaction is associated with the wheel communication pattern. (2 marks) 7 Who does lateral communication most commonly take place between? I II III Superior and subordinate One member of a peer group and another The head of one department and another II only I, and III I, II and III II and III (2 marks) 8 One of the processes of formal communication involves the meaning of a message being lost, for example, by the wrong impression being given by an email. What is this process known as? Declension Distraction Decoding Distortion (2 marks) 9 The communication method chosen by an organisation in different situations will depend on the objective of the communication. Complete the table below by selecting one of the following methods of communication: Email Face-to-face Video conferencing Letter Objective of communication Method Face-to-face communication between chief executives in two offices which are 100 miles apart Written record of a confidential matter To reach the staff of several head offices in several countries around the world (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c a t i o n Which of the following is NOT recognised as being one of the qualities of good information? Relevant Operational Timely Complete (2 marks) 11 Poor quality lateral communication will result in which of the following? Lack of direction Lack of co-ordination Lack of delegation (1 mark) 12 According to Leavitt, what is the name of the communication pattern that involves a superior giving an instruction to several subordinates simultaneously? Circle Chain Y Wheel (2 marks) 13 What is ‘feedback’? The information being communicated The communication response from the recipient The recipient of the information (1 mark) 14 Competence is the ability to do a job. Within the competency framework, competence CANNOT be which of the following? Behavioural Occupational Progressive (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 97 lOMoARcPSD|11199247 98 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c at i o n A C C A BT Q ue s t ion Ba nk Multi task questions QUESTION ONE Background Bishen’s recent appraisal has identified that his most significant weakness is poor time management. Task 1 Which TWO of the following are NOT key principles relating to time management? Goals Specificity Focus Urgency Organisation Communication (2 marks) Task 2 Identify which FOUR of the following methods could be used to improve Bishen’s time management. Producing a daily plan listing the tasks that have to be done that day Always being available to deal with queries that other staff have Only having on his desk material relating to the work that he is currently doing Responding to emails immediately they arrive in his in-box Making sure he attends every meeting where his presence has been requested Organising his work in batches requiring the same files and materials Developing subordinates by delegating work to them and not spending time explaining what they have to do Taking some action every time he reads a piece of paperwork (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c a t i o n QUESTION TWO Task 1 Match the features with the model of communication identified by Leavitt (there are 2 that apply for each). Circle Chain Y Wheel There is no obvious leader. Each member of the group can only communicate with one or two other people. It is likely be a quick method of solving problems. A central figure has the information to co-ordinate the task. (2 marks) Task 2 Rank in 1-5 order the stages in the radio feedback model with 1 being the first stage. Receiver Coded message Feedback Sender Decode message (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Identify the method of development that is most appropriate for the work situation described. Coaching Counselling Appraising Mentoring The new trainee is allocated a more experienced staff member who is given responsibility for helping the trainee to learn new skills on the job. The new trainee has regular sessions with her line manager reviewing progress and setting objectives for the next period. The line manager discusses with the new trainee concerns that other staff have raised about the trainee’s work. The new trainee is allocated a more experienced staff member who acts as a sounding board on their career development. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 99 lOMoARcPSD|11199247 100 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c at i o n A C C A BT Q ue s t ion Ba nk Task 2 Tigs Limited uses coaching as a means of staff development. Which two of the following are advantages of coaching? 1 2 3 4 It allows for the strengths and weaknesses of the trainee. It briefs the trainee on important topics that may be only indirectly work-related. It allows the trainee to talk through problems that the trainee is having with other staff. It gives the trainee the opportunity to broaden knowledge and experience (2 marks) (Total = 4 marks) QUESTION FOUR Task 1 Identify the best method of communication in the following situations. Face to face meeting Email Report Notice Provision of information about new working arrangements and answering staff queries about the changes Provision of detailed analysis of competitor strategies and new products over the last two years Provision of information about procedures to be followed if a fire alarm is raised Provision of information about the date, time and venue of the next quarterly staff meeting (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 13: P e rs o n al ef f e c ti v e n e s s a n d c o mmu ni c a t i o n Task 2 For each of the following situations, explain the flaw in the communication process. Overload Selective hearing Misunderstanding Non-verbal signs During the first part of the afternoon Kevin holds a meeting about plans for future work for an important client. During this meeting Kathy raises a number of concerns about these plans, but Kevin checks his text messages while she is talking. In the later afternoon Kevin holds a general staff meeting at which Col speaks briefly, saying how well the business is doing at the moment. During the meeting staff express concern about the number of staff that have left since the last meeting. After the meeting Col emails Kevin to say that he felt the meeting couldn’t have gone better. Paula finally manages to see Kevin at the end of the afternoon. She says that she does not think there will be sufficient staff resource to complete the work she is managing to meet the deadline in two weeks’ time. Kevin tells her that he is currently recruiting new staff to replace those who have left and they will be joining the company over the next few months. Kevin is meant to have a meeting with Paula to deal with urgent queries she has raised at 10am one morning. However, at 10am Kevin is still in a previous meeting that has overrun. At the end of this meeting Kevin is summoned to see his Managing Director, Col, and is with Col until lunchtime. At the end of the morning Kevin has still not seen Paula. (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) 101 lOMoARcPSD|11199247 102 14: P ro f e s s i o n al e t hi c s A C C A BT Q ue s t ion Ba nk Chapter 14: Professional ethics Objective test questions 1 All directors of an organisation have a duty of faithful service to their organisation. Such a duty (of faithful service) is also known as: A fiduciary responsibility A moral responsibility An ethical responsibility (1 mark) 2 Which TWO of the following are NOT concepts of corporate governance? Fairness Relativity Honesty Ethnicity Integrity Judgement Transparency (2 marks) 3 The utilitarianism approach to ethical decision making can be most closely summarised as which of the following? Deciding on the course of action which results in the most useful outcome for some of the people involved. Deciding on the course of action which results in the least useful outcome for all of the people involved. Deciding on the course of action which results in the most useful outcome for as many of the people involved as possible. Deciding on the course of action which results in the least useful outcome for as few of the people involved as possible. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 4 14: P ro f e s s i o n al e t hi c s Which of the following is/are criticism(s) of ethical relativism? I Some of those operating in the marketplace may benefit themselves at the expense of others II It may lead to an acceptance of the practice that ‘anything goes’ III It does not take any account of developing advances in morality II only I, and III I, II and III II and III (2 marks) 5 Robert works in the stores department of an electrical goods retailer. One day he carries out a stocktake of televisions and he finds that there are four fewer TVs than as per the stock records. He decides to try to investigate why there is a difference when James, the store’s manager asks him what he is doing. When Robert explains to him what he has found out, James says that he doesn’t need to worry about it and that he will look into it himself. Later on Robert sees James in the car park loading four TVs into the back of a white van and accepting cash from the driver of the van. Robert decides that he should report what he has seen to James’ line manager. Robert’s decision to disclose what he has seen is known as: _____________________________________________________ (1 mark) 6 As an accountant, you will be expected to have a number of personal and professional qualities. Identify whether the following qualities would be categorised as ‘personal’ or ‘professional’. Personal Professional Social responsibility Timeliness Courtesy Respect Scepticism Accountability Independence Reliability (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 103 lOMoARcPSD|11199247 104 14: P ro f e s s i o n al e t hi c s 7 A C C A BT Q ue s t ion Ba nk The ACCA’s Code of Ethics and Conduct states that members and firms should not accept or continue engagements in which there are, or are likely to be, significant conflicts of interest between members, firms and clients. ABC & Co. are the auditors of ZEBRA plc, a company listed on the London Stock Exchange. ABD & Co. both prepares ZEBRA plc’s accounting records and financial statements and audits them. What sort of conflict of interest could be said to arise in this situation? Self-interest threat Self-review threat Familiarity threat Advocacy threat (2 marks) 8 Is the following statement TRUE or FALSE? (Tick as appropriate) ‘An integrity-based approach to managing ethics is concerned with managers taking the sole responsibility for ethical behaviour, rather than ensuring that the organisation acts according to the law.’ 9 True False (1 mark) You work as a management accountant in the Finance Department of a big hospital. At the end of a meeting with one of your clinical budget holders, she asks you if you could give her some advice regarding her husband’s tax return, which she shows to you. She explains that her husband is unsure whether he has calculated his self-employed profit correctly because he doesn’t know whether all of the expenses that he has claimed are legitimate business expenses. Which issue is arising in this situation? Professional competence and due care Confidentiality Objectivity Conflict of interest (2 marks) 10 The ACCA Code of Ethics and Conduct states that the public may perceive that the objectivity of a member is likely to be jeopardised when the fees (for audit and recurring work) for one client (or group of clients) exceeds what percentage of the firm’s total fees? Listed/public interest companies = 10%, other companies = 15% Listed/public interest companies = 15%, other companies = 15% Listed/public interest companies = 15%, other companies = 10% Listed/public interest companies = 10%, other companies = 10% (2 marks) 11 Which ONE of the following would NOT represent an ethical objective in relation to employment practices? Promotion of workforce diversity Guarantee of minimum wages Employment training (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 14: P ro f e s s i o n al e t hi c s Multi task questions QUESTION ONE Background Accountants have codes of professional ethics because the public rely on their judgements. Task 1 Match the following situations to the ethical threat that they represent. Self-review Advocacy Familiarity Intimidation Practice having acted for client for 20 years Audit team carrying out audit and preparing client’s accounting records Accountant only receiving fees from client if a successful outcome is achieved (contingent fee) Provision of legal advice to client (2 marks) Task 2 Which of the following is NOT a suitable safeguard against a threat of self-review by a firm of accountants? Independent review by a senior partner in the firm Separation of teams within the firm to carry out different aspects of the task Independent review by a third party accountant Training to all staff about ethical threats and safeguards (2 marks) (Total = 4 marks) QUESTION TWO Task 1 Which of the following are personal qualities that an accountant should have and which are professional qualities? Personal Professional Social responsibility Reliability Scepticism Courtesy Respect Accountability Timeliness Independence (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 105 lOMoARcPSD|11199247 106 14: P ro f e s s i o n al e t hi c s A C C A BT Q ue s t ion Ba nk Task 2 Match the following situations to the ethical threat that they represent. Self interest Advocacy Familiarity Intimidatio n A client threatening to sue an accountancy practice if the practice qualifies the client’s audit report A client giving the audit partner tickets to a major sporting event An accountancy firm giving a client advice on debt reconstruction and negotiating on the client’s behalf with the bank An audit senior having an affair with a member of the client’s finance team (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Which FOUR of the following are fundamental principles of ethical behaviour from the IFAC and ACCA Codes of Ethics? Professional competence Professional behaviour Advocacy Accountability Confidentiality Reliability Respect Objectivity (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 14: P ro f e s s i o n al e t hi c s Task 2 Match the following definitions to the professional qualities that are listed. Social responsibility Independence Scepticism Accountability Taking responsibility for own work and decisions Questioning information provided to be able to form an opinion on its reliability Acknowledgement of a duty to act in the public interest Carrying out responsibilities without bias or prejudice (2 marks) (Total = 4 marks) QUESTION FOUR Task 1 Identify which personal qualities are being demonstrated in the following circumstances. Independence Responsibility Timeliness Respect During the meeting the managers discuss an important deadline that staff whom Anne manages have failed to meet. Anne acknowledges that the failure was her fault as team manager and states that she will discuss what happened with her team. During the meeting with her team, Anne asks them to explain the reasons why they failed to meet the deadline and raise any concerns they have with the way the work was carried out. At the end of the day Anne hears that her daughter has been recruited by the Accounts department of an important client of the firm. When she gets in the next morning, Anne emails the Senior Partner to say that she can no longer do any work on that client’s affairs. Anne is chairing a meeting of senior managers in the accountancy firm where she works that is due to start at 10am. Although not all the managers have arrived on time, Anne starts the meeting precisely at 10am. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 107 lOMoARcPSD|11199247 108 14: P ro f e s s i o n al e t hi c s A C C A BT Q ue s t ion Ba nk Task 2 Identify which of the following are characteristics of a compliance-based approach and which are characteristic of an integrity-based approach. Compliance Integrity Based on assumption that individuals focus on their own self-interest Aims to promote values and responsible behaviour Allows employees discretion in their actions depending on situation Underpinned by external regulation (2 marks) (Total = 4 marks) QUESTION FIVE Task 1 Identify which of the following would be acting in the public interest. Acting in public interest Not acting in public interest An employee of an airline company reporting unsafe practices An auditor of a charity reporting a material fraud An accountant at a listed company reporting illegal accounting to a stock exchange regulator An auditor publicly disclosing the identity of a whistleblower at a client organisation (2 marks) Task 2 Which of the following activities is/are legal and which is/are illegal? Tax avoidance Legal Illegal Tax evasion (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t Chapter 1: Organisations, stakeholders and the business environment Answers to objective test questions 1 II only Individuals may be capable of achieving results that an organisation can, so statement (III) is not true. Public companies are companies that are listed on the Stock Exchange. 2 A Non-Governmental Organisation Note that a co-operative is a business owned by the workers/customers who share profits. 3 The shareholders of the organisation. 4 Customers of a company Connected stakeholders include: shareholders; suppliers; financiers and customers of an organisation. 5 Primary stakeholders Primary stakeholders are those stakeholders who have a contractual relationship with an organisation. 6 Sole trader 7 When individuals work together they achieve more than when the same individuals work on their own. 8 Segment B – low level of interest, high power Stakeholders in segment B – low level of interest, high power – should be treated with care as it is possible for them to move into the segment representing high level of interest, high power and so should be kept satisfied. 9 Suppliers Shareholders Downloaded by Chee Y (cheey990@gmail.com) 109 lOMoARcPSD|11199247 110 A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t A C C A BT Q ue s t ion Ba nk 10 Those with high power but a low level of interest in the company 11 Public sector organisation 12 Involve 13 14 Money that is given in exchange for goods and services is known as consideration Resources available to public sector organisations are limited PEST analysis PEST analysis is a tool concerned with the general influences on a business of its own environment. This is a wider analysis than just the physical environment (which is included in a PESTEL analysis) but political, economic, social and technological issues in its environment. 15 Consideration 16 Wrongful dismissal Wrongful dismissal – a dismissal that breaches the contract of employment, i.e. only giving Jane one month’s pay in lieu of notice, rather than two. 17 Agreement = Offer + Acceptance 18 Environmental footprint The environmental footprint is the impact that the activities of an organisation have on the environment. 19 20 Regulated personal information should be kept longer than necessary Regulated personal information should be processed for unlimited purposes It encourages employees to keep up-to-date with developments in their industry. Outsourcing does NOT encourage employees to keep up-to-date with new developments in their industry, but quite the reverse. If a contractor is dealing with a firm’s website, there is no requirement for management to come up with new ideas or to explore new developments in the firm’s industry. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 21 A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t Barters Ltd are responsible for giving Olga a full refund It is the responsibility of the seller to refund the customer as the contracts of sale are between the person/organisation who sells the goods and the customer and not the manufacturer and the purchaser. 22 An aging population Downloaded by Chee Y (cheey990@gmail.com) 111 lOMoARcPSD|11199247 112 A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t A C C A BT Q ue s t ion Ba nk Multi task answers QUESTION ONE Task 1 If an employer needs fewer workers at a new location, then this will be fair dismissal or redundancy of the employees concerned. Task 2 Unlawful Gender Not unlawful Age Nationality Religion QUESTION TWO Task 1 Urgent IT issues at M Co may not be resolved as quickly. Longer-term contracts with N Co will be prone to disruption. Outsourcing functions like IT simplifies the structure of an organisation and should reduce ongoing operational costs, but because support is external to the organisation, there may be a greater lead time required for resolving IT issues. Because there is less direct control over subcontractor’s employees, long-term projects in particular may be prone to disruption. Task 2 (1) subjects (2) adequate (3) relevant (4) not excessive QUESTION THREE Task 1 Pulborough plc, a major customer Petworth Limited, Amberley’s principal supplier The Royal Welsh Bank, which made a 10-year S1 million loan to Amberley five years ago. Amberley has met all of its commitments in the loan agreement. Elm Lodge Mutual Fund, an institutional shareholder that has just purchased 10% of Amberley’s share capital. Pratish Gill is an internal stakeholder. Brenda Towers, Byworth Limited and Greenspace are all external stakeholders. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t Task 2 Power Interest Greenspace Low High Elm Lodge Mutual Fund High High Byworth Limited Low Low The Royal Welsh Bank High Low Greenspace clearly has high interest, but probably low power as it is only a local pressure group. Elm Lodge Mutual Fund has become a major investor in Amberley and because it has recently made the investment, is likely to be particularly interested in the company. Byworth could probably not do much about Amberley’s activities, but as relations seem to be cordial it is probably content with the current situation. Similarly, the Royal Welsh Bank is probably not very concerned with Amberley as the loan is secured and it has fulfilled all its commitments to date. QUESTION FOUR Task 1 Employees Suppliers Shareholders Fans Quality of play Prompt payment for goods Security of tenure High earnings growth Task 2 Needs support Voluntary Environmental pressure group Fulchester Rovers’ fans League authorities Local wildlife QUESTION FIVE Task (1) (2) (3) (4) agreement consideration legally binding legal capacity Downloaded by Chee Y (cheey990@gmail.com) 113 lOMoARcPSD|11199247 114 A n s w e rs t o 1: O rg an i s at i on s , s t ake h o l de rs a n d t h e bu s i n e s s e n v i ro n me n t A C C A BT Q ue s t ion Ba nk QUESTION SIX Task 1 Characteristic Not characteristic Accountability to the government Potentially unlimited demand for its services Funds can be obtained by raising taxes Unlimited resources Task 2 Involved Criminal law Not involved Company law Employment law Data protection Employment law is involved as it is highly likely that his employment contract would require not disclosing client information and a serious breach could lead to dismissal under the contract. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 2: T he mac ro - e c o n o mi c e n v i ro n me nt Chapter 2: The macro-economic environment Answers to objective test questions 1 Equilibrium National Income Equilibrium National Income will be reached where aggregate supply = aggregate demand. 2 When resources are unemployed In a situation where there is an unemployment of resources, it is known as a deflationary gap. 3 II and III 4 VAT Suppliers add VAT to the cost of the goods so they are essentially collecting tax. 5 Monetary policy, works in the medium term Quantitative easing occurs when governments print more money in the hope that the economy will be stimulated. It is generally a medium-term policy. 6 The rate of unemployment is 3% to the nearest whole per cent. 7 Injection Withdrawal Expenditure on imports Investment Savings 8 A method which causes interest rates to rise Taxation does not cause interest rates to rise. However, it can be used by governments for the other three objectives. 9 The cost of borrowing in Country XYZ will increase if interest rates rise If interest rates rise, the cost of borrowing will rise. Profits of companies will fall because they will have higher interest charges to pay and investment in Country XYZ will be more attractive because interest earnings will be potentially higher. Downloaded by Chee Y (cheey990@gmail.com) 115 lOMoARcPSD|11199247 116 A n s w e rs t o 2: T he mac ro - e c o n o mi c e n v i ro n me nt 10 A C C A BT Q ue s t ion Ba nk Interest rates Interest rates are a target for monetary policy. The formal planning of fiscal policy is set out in the Government’s Budget (expenditure and revenues) and its borrowing requirements (the Public Sector Net Cash Requirement i.e. the amount by which government planned expenditure falls short of its revenues). 11 Organisations with long-term receivables In periods of high inflation if a company has bought stock previously this can be sold for a higher price that the original cost. Those that owe large sums of money benefit as the amount that is owed falls in value in real terms. 12 Exchange rates are not an element of monetary policy Interest rates are not an element of monetary policy Answer to multi task question QUESTION ONE Task 1 Unemployment category Short-term Frictional Long-term Structural Seasonal Technological True Task 2 Imports become more expensive to the UK False Imports become cheaper to the UK Exports become more expensive to countries that use the Euro Exports become cheaper to countries that use the Euro Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 3: T he mi c ro - e c o no mi c e n v i ro n men t Chapter 3: The micro-economic environment Answers to objective test questions 1 I, III and IV The factors that determine the demand for a good include: the price of the good, the price of substitute goods and tastes and fashion. Don’t forget that the size of the income of households and the distribution of this household income also influence the demand for a good. 2 True The demand curve is downward sloping False The demand curve shows an inverse relationship between price and quantity demanded The demand curve has a negative slope 3 The estimated quantity demanded is: 7.5 Kg 4 £200 The equilibrium price of Product X is £200 (the point where the supply and demand curves intersect). 5 Market equilibrium If a maximum price is set above the equilibrium market price, it will not have an effect on the market equilibrium. A price ceiling will only affect the market equilibrium if it is set below the equilibrium price. 6 A fall in the price of Product C A fall in the price of Product C (the substitute product) would cause customers to favour Product C compared to Product A and so the demand for Product A would fall and the demand curve for Product A would shift to the left. 7 Complements Cars and tyres are complementary products because an increase in demand for cars is likely to cause an increase in demand for tyres. Downloaded by Chee Y (cheey990@gmail.com) 117 lOMoARcPSD|11199247 118 A n s w e rs t o 3: T he mi c ro - e c o no mi c e n v i ro n men t 8 A C C A BT Q ue s t ion Ba nk Inferior good As household incomes rise, the demand for Product X falls because customers will prefer to spend their additional income on what they see as ‘superior’ goods. 9 Income elasticity of demand 10 The income elasticity of demand of Product MR is 1.25 Income elasticity of demand = True False True False % change in quantity demanded % change in income % change in quantity demanded (sold) = 200/1000 × 100% = 20% 20% Income elasticity of demand = 25% = 0.8 11 The demand for Product LW is said to be income elastic. Demand for Product LW is said to be income inelastic because the income elasticity is between 0 and 1. The statement is therefore false. 12 Necessity Goods with a price elasticity of demand between 0 – 1 are known as necessities. 13 Their income elasticity is greater than one Luxury goods such as Jaguar E-types have a high income elasticity of demand (˃1) and the demand for such cars increases at a rapid rate as incomes rise. 14 Point elasticity of demand = –1.25 −7,000 % Change in demand = 28,000 = −25% 30 % Change in price = 150 = 20% −25% Point elasticity of demand = 20% = –1.25 15 Market clearing price Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 3: T he mi c ro - e c o no mi c e n v i ro n men t 16 Fall in the value of British Sterling Increase in the price of flights to St Petersburg 17 It guarantees a maximum price above the market equilibrium price 18 Bargaining power of Government bodies Porter’s five competitive forces are: 19 Threat of new entrants Threat of substitutes Bargaining power of customers Bargaining power of suppliers Rivalry between competitors in the same industry Threat of new entrants The marketing tactic of making key accessories unique to a particular product discourages competitors from offering substitute products because the costs of so doing will be greater and entry into the market made more difficult. It does not alter the balance of power of suppliers or customers nor affect the intensity of competitive rivalry. 20 It ensures that confidential financial information is maintained securely The cloud does not ensure this, and although there may be some security benefits to using the cloud, in terms of a reduced need to transfer files which can give rise to data security risk, controls are required to ensure that confidential information is maintained safely and is secure against hackers. 21 An organisation needs to process data within a reasonable time frame. This statement describes Velocity the Big Data characteristic of . 22 Better decision making and business performance 23 Process automation The use of robots to carry out low level, repetitive tasks Artificial intelligence The use of machines in decision-making Remember that artificial intelligence contains the ‘decision-making’ element. Downloaded by Chee Y (cheey990@gmail.com) 119 lOMoARcPSD|11199247 120 A n s w e rs t o 3: T he mi c ro - e c o no mi c e n v i ro n men t A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 Correct Incorrect It is defined as the percentage change in price divided by the percentage change in demand. An item which has price elasticity greater than one is price insensitive. An item that has an elasticity of less than one is said to be inelastic. If demand for an item is inelastic and its price falls, total revenue will decrease. Fall A rise in the demand for consumer credit Rise A rise in business investment A rise in the exchange rate A rise in the demand for housing Task 2 QUESTION TWO Task 1 The quantity of Product X supplied would decrease The quantity of Product X purchased would decrease The maximum price of £150 is below the equilibrium price, therefore the quantity of Product X supplied will decrease and the quantity of Product X demanded will increase. However, the quantity purchased will be limited to the quantity produced. Therefore, the quantities of Product X supplied and purchased would both decrease. Task 2 True Inferior goods have a negative income elasticity of demand False Elastic goods are luxuries and have an income elasticity of demand of 1 QUESTION THREE Task 1 Monopolists are price takers. Monopolists cannot earn supernormal profits in the long-term. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 3: T he mi c ro - e c o no mi c e n v i ro n men t Task 2 No Supplier concentration Yes Access to distribution channels Economies of scale Industry growth rate QUESTION FOUR Task 1 Political Economic Social Technological Foreign exchange markets Consumer protection Business spending on research Home working Task 2 Perfectly competitive Firms are price takers. Not perfectly competitive There is a small number of significant producers. There are significant differences between the products each producer offers. The Internet means that information about the prices set by all producers is readily available. New entrants need to commit significant financial resources to be successful in the industry. It is possible for firms to gain a significant advantage by introducing new technologies. Firms in the industry operate an unofficial system of price maintenance to keep profit levels at a reasonable level. There is considerable movement of labour between firms operating in the market. Downloaded by Chee Y (cheey990@gmail.com) 121 lOMoARcPSD|11199247 122 A n s w e rs t o 4: O rg an i s at i on al s t ru ct u re A C C A BT Q ue s t ion Ba nk Chapter 4: Organisational structure Answers to objective test questions 1 Compliance 2 Direct supervision The main job of the strategic apex is to make sure that the organisation is on course to complete its mission. 3 There is local decision making 4 Operating staff Operating staff is not one of the components of all organisations, according to Mintzberg, but the Operating core is. 5 Increasing average span of control Increasing the number of middle management redundancies When organisations ‘delayer’ they increase the average span of control, reduce the number of middle management jobs and become flatter in structure. 6 Middle management Middle management is not one of the classifications of the Anthony hierarchy. Robert Anthony classified managerial activity as: strategic, tactical and operational. 7 Functional departmentation Functional departmentation involves organising people who do similar tasks to work together. 8 Centralisation leads to greater co-ordination and control but less flexibility Centralisation leads to greater control and co-ordination, but it is decentralisation which leads to greater flexibility. 9 Scalar chain Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10 A n s w e rs t o 4: O rg an i s at i on al s t ru ct u re The number of employees working for a manager The span of control or the span of management indicates the number of subordinates / employees who report directly to a superior/manager. 11 True False The tactical roles are Guardian and Advisor roles Co-ordinators are responsible for implementing decisions Guardians ensure that the decision is implemented within the time and budget specified at the tactical level The tactical roles are the Guardian and Coordinator roles (not Advisor). Guardians ensure that the decision is implemented within the time and budget specified at the strategic level. 12 Primary activities Primary activities: inbound logistics, operations, outbound logistics, marketing and sales and after-sales service. 13 Support activities Support activities provide support to the primary activities. 14 Outbound logistics Primary activities include: inbound logistics, operations, outbound logistics, marketing and sales and after-sales advice. Downloaded by Chee Y (cheey990@gmail.com) 123 lOMoARcPSD|11199247 124 A n s w e rs t o 4: O rg an i s at i on al s t ru ct u re A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 Swift decisions are likely to be made at William Limited. William Limited is organised in a matrix structure. Task 2 Rule Providers Experts Advisors Strategic Tactical Operational Mark, who uses his marketing expertise to advise on how the branch network should develop Sasha, a senior management accountant who compares branch performance with budgeted performance and investigates variances Sunil, a regional manager with a number of local branch managers reporting to him, who is responsible for the overall performance of his region Provide input and analysis to ensure that decisions are made with the best available information Provide extra or specialised information if it is required QUESTION TWO Task 1 Quicker decisions are made. Standardisation will be increased. Task 2 Owen, who deals with customers with queries in a local branch QUESTION THREE Task 1 They develop spontaneously. They reflect patterns of power and influence. Informal networks neither directly support or undermine formal authority or management objectives, but they do emerge spontaneously and are often influenced by the patterns of unofficial power and influence within an organisation. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 4: O rg an i s at i on al s t ru ct u re Task 2 Entrepreneurial Functional Matrix Divisional Culture created by business founder Organisation is based on tasks involved in projects Individuals’ influence depends on the roles they have rather than their personal qualities Head office has limited role, mainly offering support services QUESTION FOUR Task 1 It allows for a mix of skills and expertise. It facilitates managers being held responsible for end results. Task 2 True False In a matrix organisation, it is possible for an individual to have several line managers. Small, simple, companies dominated by one person do not have a succession problem as they are limited companies. In a divisional structure each division is largely autonomous. Functional organisations are normally fluid with rapid information flows. Small companies may have perpetual succession in strictly legal terms, but will need to find someone else to take over running the business if the company is to continue trading when the dominant individual leaves. Downloaded by Chee Y (cheey990@gmail.com) 125 lOMoARcPSD|11199247 126 A n s w e rs t o 4: O rg an i s at i on al s t ru ct u re A C C A BT Q ue s t ion Ba nk QUESTION FIVE Task 1 Wide span of control Minimal hierarchy Task 2 Access Annelise No access Louise Abi Hayley Annelise would be involved with payroll administration when preparing the wages each month and Louise would have access to payroll information for all employees (as a member of the HR department). Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 5: O rg an i s at i on al c u lt u re a n d c o mmi t t ee s Chapter 5: Organisational culture and committees Answers to objective test questions 1 Product, place, price, promotion 2 Mullins 3 Power 4 Masculinity / femininity Masculine cultures are much more assertive, competitive and decisive than the more feminine cultures which place more importance on the quality of life and personal relationships. 5 6 External reporting Reporting is not one of the main management accounting functions. 7 8 Role conflict Ilya as a union representative is experiencing role conflict. This is because he has a responsibility to ensure the efficient management of salary costs as head of studies, but as representative of the union would support better pay and conditions for the union members in his department which he represents. 9 Slower decisions Committees are appointed to make democratic, well considered and workable decisions, using the broader expertise of a representative group of people. However, decisions arrived at by committee can take longer to arrive at. 10 Role 11 Schwartz & Davies Human resources department Selection 12 First level Downloaded by Chee Y (cheey990@gmail.com) 127 lOMoARcPSD|11199247 128 A n s w e rs t o 5: O rg an i s at i on al c u lt u re a n d c o mmi t t ee s A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 True False The main function of marketing is to maximise sales volume. The four Ps of the marketing mix are product, price, profit and promotion. The main function of marketing is to identify and anticipate customer needs. The Four Ps of the marketing mix are product, place, price and promotion. Task 2 Power distance Individualism Uncertainty avoidance Long-term orientation QUESTION TWO Task Company A D1 Company B B1 Company C C1 Company D B2 QUESTION THREE Task 1 Power Role Task Person Strong central control of a small organisation by a single key figure A stable, rational, organisation, with a bureaucratic culture and an authority system based on position and function An organisation designed to serve the interests of the staff within it, with managers acting as facilitators of staff’s contribution A strong team that solves problems, is flexible and whose main aim is to get the job done Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 5: O rg an i s at i on al c u lt u re a n d c o mmi t t ee s Task 2 Goods and services Services only Physical evidence Promotion People Place Downloaded by Chee Y (cheey990@gmail.com) 129 lOMoARcPSD|11199247 130 A n s w e rs t o 6: G o v e rn an c e and s o c i al re s p o n si b i l it y A C C A BT Q ue s t ion Ba nk Chapter 6: Governance and social responsibility Answers to objective test questions 1 Integrity 2 Provide guidance on the standards of best practice for companies to adopt 3 None of the above Non- executive directors are not required to reassure third parties as it does not form part of their duties and therefore cannot be viewed a disadvantage. 4 Reactive strategy 5 A company tries to reduce or avoid further obligations which may arise from a specific problem/fault with a product 6 Non-executive directors only Audit committees should be staffed by independent non-executive directors. 7 True False Social responsibility only needs to be considered by a company if it employs more than 1,000 employees worldwide Only public listed companies must demonstrate consideration of corporate governance guidelines Adopting an ethical position or not depends on the size of the company concerned Public listed companies and limited companies are regulated by corporate governance Listed companies must comply or explain. 8 Confidentiality 9 1, 2, 3 and 4 All the options describe measures that will limit environmental impact or potentially reduce the carbon footprint. 10 Accommodation Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 6: G o v e rn an c e and s o c i al re s p o n si b i l it y Answers to multi task questions QUESTION ONE Task 1 True False One of the main disadvantages of non-executive directors is the limited time that they have to attend to the company’s affairs. Only non-executive directors should staff the audit committee of a company. Chairman Secretary Allocating discussion time for each item on the agenda Advising committee members of the deadlines of submitting items for the agenda Informing committee members of the date, time and place of the next meeting Advising committee members of the terms of reference for the meeting Task 2 QUESTION TWO (a) Non-executives only Remuneration Non-executives and executives Social responsibility Risk Audit Feature Not a feature Emphasis on short-term profitability Lack of independent scrutiny Regular meetings with institutional shareholders Domination by a single person or small group (b) Corporate governance provisions attempt to combat items 2 and 4 in this list. Downloaded by Chee Y (cheey990@gmail.com) 131 lOMoARcPSD|11199247 132 A n s w e rs t o 6: G o v e rn an c e and s o c i al re s p o n si b i l it y A C C A BT Q ue s t ion Ba nk QUESTION THREE Task Proactive Reactive Defensive Accommodation Issues widely-drawn disclaimers of responsibility for faults with products Only deals with problems with products when complaints are made by consumers Withdraws a whole range of products from sale when a fault is found with one product in the range Has regular meetings with consumer groups and makes changes to the product specification in the light of the feedback from these meetings Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 7: Sys t e ms , c o n t ro l s an d c o mp li an c e Chapter 7: Systems, controls and compliance Answers to objective test questions 1 Companies House The accounts should be filed with the Registrar of Companies at Companies House. 2 This statement is false. Management accounts do not need to comply with either company law or accounting standards. Management accounts do not need to comply with either company law, or accounting standards, whereas financial accounts must comply with both. 3 An audit report which is prepared when the company’s auditors believe the accounts do not show a true and fair view and/or have not been properly prepared in accordance with company legislation. 4 National legislation 5 GAAP (Generally Accepted Accounting Practice) 6 Financial Reporting Council Answer to multi task question QUESTION ONE Task 1 Monthly management accounts Annual financial statements Company law Accounting standards Task 2 Financial accounting Management accounting Treasury Preparing forecasts of cash requirements Investment appraisal Analysis of profit centre performance Arranging a bank overdraft facility Downloaded by Chee Y (cheey990@gmail.com) 133 lOMoARcPSD|11199247 134 A n s w e rs t o 8: Co n t ro l , s e c u rit y a n d a u di t A C C A BT Q ue s t ion Ba nk Chapter 8: Control, security and audit Answers to objective test questions 1 Internal auditors report on the effectiveness of the internal control systems of the company that they are auditing and work for The option internal auditors report on the effectiveness of the internal control systems of the company that they are auditing, which is not the same company that they work for is not correct. As although an internal audit department can be outsource some of the work to an independent firm the staff of the firm that are providing internal audit services but are not ‘internal auditors’. 2 The audit committee of the board of directors of Salisbury plc The internal audit department is not part of the finance department and in order to reduce the occurrence of fraud, the internal audit department reports to the audit committee of Salisbury plc’s board of directors. 3 Distribution 4 Purchasing 5 Statement of financial position 6 Paying the supplier once the goods have been received The supplier is paid by the accounts department once the invoice has been received and checks have been made to establish the fact that the goods have been received. 7 Reconciliation Petty cash should be reconciled when the petty cash float needs to be replenished and a bank reconciliation should be performed at least once a month. This should DETECT any discrepancies. 8 9 Physical Personnel Internal control Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 10 A n s w e rs t o 8: Co n t ro l , s e c u rit y an d au di t Organisation Management 11 True Internal audit is part of the internal control system of an organisation. False Internal audits are carried out for the purpose of reporting to the shareholders of an organisation. External audits examine the published accounts of an organisation and the report their findings in the form of an audit report. Internal audit is part of the external audit system Yes 12 13 Compliance tests No Substantive tests To identify errors or omissions in the accounts Substantive testing when carried out as part of an audit is designed to identify errors and omissions in the accounts. 14 Operational audits Operational audits are also known as: management, efficiency or ‘value for money’ audits. 15 No Without audit manuals and working papers of the internal audit department being available for inspection, the audit manager cannot rely on the word of the Finance Director. The audit manager must be able to inspect documentary evidence before he can judge whether he can rely on the work of the internal auditors. 16 A system which shows personnel who have accessed a computer system and logs any changes that have been made. 17 To give an opinion on whether the financial records of an organisation give a true and fair view of the accounting records of an organisation The primary purpose of an external audit is to review the accounting records of an organisation and to give and opinion as to whether the financial statements of the organisation represent a true and fair view of that organisation. Downloaded by Chee Y (cheey990@gmail.com) 135 lOMoARcPSD|11199247 136 A n s w e rs t o 8: Co n t ro l , s e c u rit y a n d a u di t A C C A BT Q ue s t ion Ba nk 18 Only internal auditors can review the controls of the organisation they are auditing. External auditors cannot rely on the work of internal auditors, but internal auditors can rely on the work of external auditors. External auditors can review the controls of the organisation they are auditing. External auditors can rely on the work of internal auditors provided that it has been proved worthy of having such reliance placed on it. 19 True False Board of directors The Board of directors (if an organisation had an audit committee in place, then the internal auditors would report direct to this committee). 20 Shareholders 21 To establish whether a figure is appropriate Substantive tests are tests for accuracy and they are used to establish facts. The other tests are less specific and arguably more subjective. 22 Transaction processing system At the operational level, systems connected to individual and batches of input and output processes are known as transactional. Management information, knowledge management and decision support systems are more relevant to the tactical and strategic levels. 23 Goods inwards Reviewing suppliers’ signatures on delivery notes would be a review of a goods inwards control relating to verifying the authenticity and origin of supplies. The other controls are either more general such as quality or to do with other specific functions such as despatch to customers and credit control. 24 Disruption of business operations by misdirection of computer systems Theft of data held by the company by hackers These two are the major elements that cybersecurity is designed to protect. The security systems cannot prevent misuse of information by an employee who is entitled to access that information as part of their job. Neither can they ensure that employees implement IT controls (such as using passwords and changing them regularly). While the system can prompt for such changes, the strength of the password used/changes to it are still in the control of the employee and can make the system vulnerable. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 8: Co n t ro l , s e c u rit y an d au di t Answers to multi task questions QUESTION ONE Task 1 General Application Limit checks on amounts input Insisting staff change their password every 30 days Production of a list of all transactions processed for management review Forbidding staff to take laptops away from the company’s premises Task 2 E I; H II; C III; B IV QUESTION TWO Task 1 Phil Task 2 Phil Jill Both Neither Reviewing the security controls over Hightower’s IT systems Carrying out a value-for-money audit of Hightower’s operations Signing the audit report on Hightower’s accounts Investigating possible theft of inventory from Hightower’s stores Reporting to Hightower’s management weaknesses in internal control found during the course of the audit work Assessing whether the financial statements comply with international financial reporting standards If Jill is just an employee, she will not have the authority to sign audit reports. Both Phil and Jill should report control weaknesses they have found, even if testing controls is not the primary purpose of their work. Downloaded by Chee Y (cheey990@gmail.com) 137 lOMoARcPSD|11199247 138 A n s w e rs t o 8: Co n t ro l , s e c u rit y a n d a u di t A C C A BT Q ue s t ion Ba nk QUESTION THREE Task 1 Identifying errors and omissions in accounts Purpose Not a purpose Obtaining evidence that the internal controls of an organisation are working satisfactorily Task 2 Bank and cash Purchasing Stores Credit control Comparison of bank paying-in slips against records of monies received Review of overdue accounts Comparison of invoices received with orders Input Dispatch of goods only on receipt of a sales order QUESTION FOUR Task 1 Time sheets Output Payslips Payroll analysis Bonus details Involved Task 2 Andrew Not involved Jenny Aidan Abdul Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 8: Co n t ro l , s e c u rit y an d au di t QUESTION FIVE Task 1 Keypad entry Security guards Task 2 True False Internal audit is part of the external audit system. Work done by the internal audit department of a company can never be relied upon by the external auditors. External auditors are appointed by the Chief Executive of the company that is being audited. External auditors are appointed by the shareholders of the company that is being audited. Downloaded by Chee Y (cheey990@gmail.com) 139 lOMoARcPSD|11199247 140 A n s w e rs t o 9: I d e nt i f yin g an d p re v e n t in g f rau d A C C A BT Q ue s t ion Ba nk Chapter 9: Identifying and preventing fraud Answers to objective test questions 1 Teeming and lading 2 Directors 3 In order to overstate profits and net assets. 4 Failing to check references of new members of staff Loss of assets 5 6 True 7 Window dressing of financial statements is where transactions are manipulated to make the statement of financial position look stronger. False Opportunity is not a pre-requisite for fraud. Shareholder returns may be higher than they should be Shareholder returns will be lower, not higher than they should be. If the results of an organisation were deliberately OVERSTATED then the profits distributed to shareholders would be higher than they should be because profits would have been intentionally overstated. 8 Teeming and lading Teeming and lading is one of the best known frauds in the sales ledger area. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 9 A n s w e rs t o 9: I d e nt i f yin g an d p re v e n t in g f rau d Suspicious Activity Report ‘With regards to money laundering, it is an offence to fail to disclose knowledge or suspicion of money laundering. Failure to make a Suspicious Activity Report A (SAR), on an SAR form, disclosing knowledge or suspicion of money laundering…’ 10 Layering 11 Yes No Laundering Failure to report Tipping off The question does not say that Fred’s accountant has failed to report this to the authorities. 12 Collusion 13 Identification of areas of potential risk Before fraud can be prevented it is first necessary to identify areas where fraud is likely to occur before preventative measures can be taken. 14 5 years 15 A Suspicious Activity Report 16 In order to privately purchase a business asset at below market value. In order to pay HM Revenue & Customs less tax than the company is actually liable for. Downloaded by Chee Y (cheey990@gmail.com) 141 lOMoARcPSD|11199247 142 A n s w e rs t o 9: I d e nt i f yin g an d p re v e n t in g f rau d A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 1 Placement 2 Layering 3 Integration Task 2 C1; B2 QUESTION TWO Task 1 Dishonesty Not a prerequisite Motivation Manipulation Opportunity Prerequisite Manipulation is not a prerequisite of fraud it is a method of carrying out. Task 2 The transfer of money from business to business, or place to place, in order to conceal its initial source. The initial disposal of the proceeds of criminal activity into an apparently legitimate business activity or property. Downloaded by Chee Y (cheey990@gmail.com) I II III lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams Chapter 10: Leading and managing individuals and teams Answers to objective test questions 1 Responsibility is the liability a person has to carry out their duties whereas authority is the right a person has to do something. 2 3 Planning Commanding Controlling Organising Co-ordinating F W Taylor 4 Economic performance 5 Interpersonal, informational and decisional 6 True Elton Mayo was the founder of the Human Relations Movement. 7 Ashridge Model 8 False Impoverished 9 10 Doing things right Maintaining rather than developing Power Downloaded by Chee Y (cheey990@gmail.com) 143 lOMoARcPSD|11199247 144 A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams A C C A BT Q ue s t ion Ba nk 11 Kotter 12 Spokesperson (this is a task of the informational managerial role). 13 1 and 4 Only the Task and Authoritarian styles have the value of the task rated at 9 on the Blake and Mouton grid, so these are the most task efficient styles. 14 Middle of the Road Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams Answers to multi task questions QUESTION ONE Task 1 Concern for people Concern for task Task 2 True False Statement 1 Task-orientated leadership is advisable in a crisis Statement 2 There is no ideal leader, different leaders will do well in different situations QUESTION TWO Task 1 Asking what and why Challenging the status quo Task 2 Concern for task Concern for people Country club Low High Team High High Authoritarian High Low Impoverished Low Low QUESTION THREE Task 1 Organising Commanding Task 2 Responsible Failure to ensure effective team management Not responsible Failure to allow the team enough time to develop Marcus has allowed the team to develop as it was performing well initially, but because of the later failures, has clearly failed to manage the team effectively overall. Downloaded by Chee Y (cheey990@gmail.com) 145 lOMoARcPSD|11199247 146 A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams A C C A BT Q ue s t ion Ba nk Answers to objective test questions (1) Recruitment and selection 1 Costs may be higher than other methods 2 Recruitment process stage Second Third Advertise job internally First Identify need for new recruit Prepare job description 3 Job advertisement 4 The fee may be the most important thing Recruitment consultants will earn a fee for introducing candidates to the organisation, but they may not necessarily be the best candidates if the agency is most concerned with earning a fee for its work. 5 Open Open questions reveal the most about a candidate as they encourage candidates to talk. 6 The interview is only as good as the interviewer Assessment is subjective 7 Advantage Management skills can be identified Disadvantage The impact of team work can be identified Decisions may be divided Time consuming and expensive 8 Personality test 9 It is standardised Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams 10 11 Case studies Role-play exercises Job analysis 12 Job title Who she reports to (her line manager) 13 One-to-one or individual interviews 14 Analytical 15 It is an opportunity to assess interpersonal skills Downloaded by Chee Y (cheey990@gmail.com) 147 lOMoARcPSD|11199247 148 A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 References Interview Task 2 They can take a long time They can be expensive QUESTION TWO Task 1 (1) Investigate need for new post (2) Check the budget exists to recruit (3) Identify selection criteria (4) Prepare particulars of the job (5) Decide how to find applicants (6) Arrange external advertising (7) Conduct interviews (8) Request references Task 2 Application forms Interviews Provides factual information in standard form Allows assessment of nonverbal communication Provides external view of candidates Provides objective assessment of intelligence and aptitude Selection testing Consultants Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams QUESTION THREE Task 1 Recruitment Contracting an agency to headhunt a new Chief Executive for an organisation Selection Carrying out the first and second interviews before appointing the new Chief Executive of an organisation Task 2 Checking references Reviewing results of aptitude tests Downloaded by Chee Y (cheey990@gmail.com) 149 lOMoARcPSD|11199247 150 A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams A C C A BT Q ue s t ion Ba nk Answers to objective test questions (2) Diversity and equal opportunities 1 Harassment 2 Direct discrimination Victimisation 3 Victimisation 4 Indirect discrimination 5 II only XYZ Ltd appears to have indirectly sexually discriminated against Anna, but she didn’t get the job because she was not as well qualified for it as the other candidate, who just happened to be male. Anna would not have a successful indirect sexual discrimination case in this instance. 6 Additional training provided for certain employee groups where there is a requirement 7 True 8 Specifying 21-25 years old in the advert is age discrimination False Specifying ‘recent graduate’ in the advert is age discrimination Positive action Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 10: L e ad i n g an d man ag i ng i n di v i d u al s a nd t e ams Answer to multi task question QUESTION ONE Task 1 Direct Indirect Discrimination on the grounds on sex Discrimination on the grounds of age False Diversity in the workplace is the same as equal opportunities True Discrimination relating to sex, race and disability are governed by law Task 2 Equal opportunities is about individuals having equal opportunity regardless of sex, age etc. Diversity is about positively valuing differences in the workplace. Downloaded by Chee Y (cheey990@gmail.com) 151 lOMoARcPSD|11199247 152 A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams A C C A BT Q ue s t ion Ba nk Chapter 11: Individuals, groups and teams Answers to objective test questions 1 Context 2 A group is a collection of individuals who are in the same vicinity but who do not interact with each other True False A team is a collection of individuals who interact with each other but who are not linked by a common purpose A group – a collection of individuals – who interact with each other. A team – a collection of individuals – who interact and are linked by a common purpose. 3 4 Delayed final decision Conflict Nine roles Originally Belbin’s work referred to eight team roles. Later, a ninth role was added (‘specialist’). 5 Completer Finisher 6 Problem solver Ignores details 7 Forming Storming Norming Team members begin to trust each other at this stage Team members behave relatively independently at this stage Team members put forward their ideas for the rest of the team to consider at this stage Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 8 A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams Identity Identity. A group is a collection of individuals who all identify themselves as being part of a group, i.e. they have an identity. 9 Quantitative factor 10 Ineffective Labour turnover is high Effective Absenteeism is high Output and productivity is high Multi-disciplinary team The correct response is not multi-skilled team as even though people work in different departments that does not equate to them having different skills as they could have the same skills for example numeracy, literacy. A multi-disciplinary team contains people from different specialist areas in an organisation for example sales, product design and finance. 11 Resource-investigator The scenario accurately describes the resource-investigator. 12 Effective Individual targets are achieved Ineffective Team members are suspicious of each other High quality of output is produced 15 Norming 16 Conformity Downloaded by Chee Y (cheey990@gmail.com) 153 lOMoARcPSD|11199247 154 A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 B I; D II; G III; F IV Task 2 Forming Storming Norming Performing Different ideas compete for consideration. Team members tend to behave quite independently. Team members are expected to take more responsibility for making decisions and for their professional behaviour. Team members are now competent, autonomous and able to handle the decision-making process without supervision. QUESTION TWO Task 1 E I; A II; H III; D IV Task 2 Teamworking can be used to combine the skills of different individuals. Teamworking can facilitate communications between different business functions. Teamworking may mean that compromise decisions are reached rather than the best decision for the organisation. Failure to consider alternative strategies will often be a weakness rather than a strength. QUESTION THREE Task 1 Empathy Co-operation Task 2 Adjourning is when a team becomes complacent about the task that it is performing Dorming is when a team has finished one task and is waiting to commence the next one True False Adjourning is when a team has finished one task and is waiting to commence the next one. Dorming is when a team becomes complacent about the task that it is performing. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams QUESTION FOUR Task 1 Team BIG is performing as an effective team Based on the above information, it is not possible to make a preliminary assessment of team BIG’s performance Task 2 High absenteeism from team meetings Poor understanding of individual roles within the team Downloaded by Chee Y (cheey990@gmail.com) True False 155 lOMoARcPSD|11199247 156 A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams A C C A BT Q ue s t ion Ba nk Answers to objective test questions (1) Motivating individuals and groups 1 2 Content Theory Process Theory What things are individuals motivated by? How can individuals be motivated? Affection 3 4 Responsibility Promotion Job security 5 True False The most primitive need is ‘Safety’ and it is at the bottom of the pyramid Self-actualisation is the easiest need to satisfy The most primitive need, which is at the bottom of the pyramid is ‘Physiological’. Self-actualisation is the most difficult need to satisfy. 6 Their motivation will increase Motivation will increase. It is a product of V (Valence) and E (Expectancy). 7 F=V×E The average employee dislikes work and will avoid it where possible Most employees must be forced to work towards an organisation’s objectives 8 Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams 9 Job enrichment 10 Job enlargement 11 Piecework scheme 12 Pay and benefits 13 McGregor McGregor – in his X-Y Theory 14 Answer = 0.09 (0.9 × 0.1) 15 Job enlargement 16 The strength of an individual’s preference for a given outcome 17 Tolerant 18 Intrinsic motivation Downloaded by Chee Y (cheey990@gmail.com) 157 lOMoARcPSD|11199247 158 A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 Motivator Hygiene One-off year-end bonus to reward contribution during the year Competitive salary Comfortable office Opportunity to mentor new staff Theory X Task 2 Individuals need to be told clearly the sanctions they will face if they do not perform adequately. Theory Y Individuals will naturally direct their work towards meeting organisational objectives. Individuals are naturally resistant to change. Most individuals do not seek advancement within the organisation. QUESTION TWO Task 1 Receiving excellent references from your employer when you apply for a new job due to a house move Coming top in your Accountancy examinations Task 2 Content Theory Process Theory McGregor’s X-Y Theory Maslow’s hierarchy of needs Herzberg’s Motivation-Hygiene Theory Vroom’s Expectancy Theory Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 11: I n d i v id u al s , g ro u p s a n d te ams QUESTION THREE Task 1 Valence Expectancy This means that a person will be motivated if the reward is both sufficiently attractive and attainable. Task 2 False Affection is a physiological need. True Relationships are a social need. Downloaded by Chee Y (cheey990@gmail.com) 159 lOMoARcPSD|11199247 160 A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt A C C A BT Q ue s t ion Ba nk Chapter 12: Training and development Answers to objective test questions 1 Increased staff costs 2 Reflector 3 4 Search for new ideas and keen to experiment Act quickly and confidently on ideas and get straight to the point in a discussion Behaviour 5 Knowledge acquired gradually by instruction and learning The growth or realisation of an individual’s potential and ability through the provision of learning and educational experiences Development Education 6 Increased skills More interesting work 7 Second Third Fourth Acting First Thinking Experiencing Reflecting 8 Accommodating 9 Assimilating Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt 10 The first stage in the training and development process is to set objectives for the skills and competences required to fulfil the overall strategy The final stage in the training and development process is to check to ensure that the objectives have actually been met True False The first stage in the training and development process is to identify the skills and competences needed to fulfil the overall strategy. The second stage involves setting objectives for the skills and competences that are required. 11 Pay salaries This is the function of the Payroll/Finance Department. 12 Being thrown in at the deep end without notes and instructions This kind of learner will prefer readings, lectures, exploring analytical models and having time to think things through. 13 Kolb Increased productivity Greater staff flexibility Putting ideas and theories into practice Acting quickly and confidently on ideas and ‘getting straight to the point’ 14 15 Downloaded by Chee Y (cheey990@gmail.com) 161 lOMoARcPSD|11199247 162 A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 Better performance at work Self confidence Increased flexibility and improved staff retention are benefits to employers and NOT employees. Task 2 Improved performance of staff Staff job satisfaction Staff job satisfaction can lead to improved retention (hence the company continues to use the investment in that individual). Improved performance is a benefit to the company. Reduced cost is unlikely to result as improved staff may demand improved wages. Improved employability is an advantage to the individual but may be a disadvantage to the entity, if the person leaves as a result. QUESTION TWO Task 1 Do Activists Conclude Review Plan Reflectors Theorists Pragmatists Task 2 Doing Thinking Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt QUESTION THREE Task 1 Immerse themselves fully in new experiences Open-minded, enthusiastic and flexible Activists immerse themselves fully in new experiences and are open-minded, enthusiastic and flexible. Task 2 Diverging Assimilating Converging Accommodating Helga develops by solving problems and finding practical uses for theories. Yen-pei prefers to work in groups so that she can understand varying perspectives of different people. Jaitinder prefers to act on instinct and intuition rather than logic and analysis. Amrish requires clear explanations and organises information received in clear formats. Downloaded by Chee Y (cheey990@gmail.com) 163 lOMoARcPSD|11199247 164 A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt A C C A BT Q ue s t ion Ba nk Answers to objective test questions (1) Performance appraisal 1 On-the job training 2 Second Third Agree feedback First Fourth Agree resources Agree rewards Agree objectives 3 Measurable 4 360 degree appraisal 5 Understand organisational goals Understanding organisational goals is a benefit of performance appraisal to the employees of an organisation, not the organisation itself. It is hoped that the organisation already understands the goals it is trying to achieve before appraising its staff. 6 7 Allocate more time in case appraisal overruns Train managers to conduct honest appraisals ‘Tell and sell’ technique This is illustrated by Ashridge Management College theory. 8 I and II only. One of the main aims of individual performance appraisals is for feedback to be given by employers to employees (not employees to employers, though this might be useful, it is not one of the main aims of an individual performance appraisal). 9 Upward appraisal Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 12: T rai n i ng a n d d e v e l o p me nt 10 Subjectivity 11 Management by objectives Downloaded by Chee Y (cheey990@gmail.com) 165 lOMoARcPSD|11199247 166 A n s w e rs t o 13: P e rs o n al e ff e c t i v en e s s a nd c o mmu n i cat i o n A C C A BT Q ue s t ion Ba nk Chapter 13: Personal effectiveness and communication Answers to objective test questions 1 Production The key principles of time management are: goals, focus, urgency, priorities, action plans and organisation. Production is not one of the key principles. 2 R = Realistic (S = Specific, A = Attainable or Agreed, R = Realistic, T = Time-bounded) 3 Coach Andrew is a coach. He is given the task of achieving a specific objective ie to show Peter how to perform tasks. 4 Counsellor Counselling is primarily a non-directive role which involves helping others to work through their own problems and to come up with their own solutions. 5 Vertical The information flows up and down between George (superior) and Fred (subordinate). 6 7 The circle communication pattern solves problems the slowest. The highest job satisfaction is associated with the wheel communication pattern. II and III II and III. Lateral communication (also known as horizontal communication) takes place between people of the same rank (one member of a peer group and another and the heads of different departments). I describes vertical communication. 8 Distortion Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 13: P e rs o n al e ff e c t i v en e s s a nd c o mmu n i ca t i o n 9 Objective of communication Face-to-face communication between chief executives in two offices which are 100 miles apart 10 Method Video conferencing Written record of a confidential matter Letter To reach the staff of several head offices in several countries around the world Email Operational The qualities of information are: accurate, complete, cost-beneficial, user-targeted, relevant, reliable, authoritative, timely and easy to use. 11 Lack of co-ordination Poor lateral communication leads to lack of coordination. The other common business problems are connected with upward or downward channels of communication or lines of authority. 12 Wheel 13 The communication response from the recipient 14 Progressive Downloaded by Chee Y (cheey990@gmail.com) 167 lOMoARcPSD|11199247 168 A n s w e rs t o 13: P e rs o n al e ff e c t i v en e s s a nd c o mmu n i cat i o n A C C A BT Q ue s t ion Ba nk Answers to multi task questions QUESTION ONE Task 1 Specificity Communication Producing a daily plan listing the tasks that have to be done that day Only having on his desk material relating to the work that he is currently doing Organising his work in batches requiring the same files and materials Taking some action every time he reads a piece of paperwork Task 2 QUESTION TWO Task 1 Circle Chain Y Wheel There is no obvious leader. Each member of the group can only communicate with one or two other people. It is likely to be a quick method of solving problems. A central figure has the information to co-ordinate the task. Task 2 1 Sender 2 Coded message 3 Decode message 4 Receiver 5 Feedback Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 13: P e rs o n al e ff e c t i v en e s s a nd c o mmu n i ca t i o n QUESTION THREE Task 1 Coaching Counselling Appraising Mentoring The new trainee is allocated a more experienced staff member who is given responsibility for helping the trainee to learn new skills on the job. The new trainee has regular sessions with her line manager reviewing progress and setting objectives for the next period. The line manager discusses with the new trainee concerns that other staff have raised about the trainee’s work. The new trainee is allocated a more experienced staff member who acts as a sounding board on their career development. Task 2 It allows for the strengths and weaknesses of the trainee. It gives the trainee the opportunity to broaden knowledge and experience. QUESTION FOUR Task 1 Face to face meeting Email Provision of information about new working arrangements and answering staff queries about the changes Report Notice Provision of detailed analysis of competitor strategies and new products over the last two years Provision of information about procedures to be followed if a fire alarm is raised Provision of information about the date, time and venue of the next quarterly staff meeting. Downloaded by Chee Y (cheey990@gmail.com) 169 lOMoARcPSD|11199247 170 A n s w e rs t o 13: P e rs o n al e ff e c t i v en e s s a nd c o mmu n i cat i o n A C C A BT Q ue s t ion Ba nk Task 2 Overload Selective hearing Misunderstanding Non-verbal signs Kevin is meant to have a meeting with Paula to deal with urgent queries she has raised at 10am one morning. However at 10am Kevin is still in a previous meeting that has overrun. At the end of this meeting Kevin is summoned to see his Managing Director, Col, and is with Col until lunchtime. At the end of the morning Kevin has still not seen Paula. During the first part of the afternoon Kevin holds a meeting about plans for future work for an important client. During this meeting Kathy raises a number of concerns about these plans, but Kevin checks his text messages while she is talking. In the later afternoon Kevin holds a general staff meeting at which Col speaks briefly, saying how well the business is doing at the moment. During the meeting staff express concern about the number of staff that have left since the last staff meeting. After the meeting Kevin emails Col to say that he felt the meeting couldn’t have gone better. Paula finally manages to see Kevin at the end of the afternoon. She says that she does not think there will be sufficient staff resource to complete the work she is managing to meet the deadline in two weeks’ time. Kevin tells her that he is currently recruiting new staff to replace those who have left and they will be joining the company over the next few months. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 14: P ro f e ss i o n a l e t h i cs Chapter 14: Professional ethics Answers to objective test questions 1 A fiduciary duty 2 Relativity Ethnicity Relativity and ethnicity are not concepts of Corporate Governance. 3 Deciding on the course of action which results in the most useful outcome for as many of the people involved as possible Utilitarianism is the best-known ethical principle that is based on the outcome or consequence of a decision taken. 4 II only I is a criticism of egoism and III is a criticism of absolutism. 5 Whistle blowing 6 Personal 7 Reliability Professional Social responsibility Timeliness Courtesy Respect Scepticism Accountability Independence Self-review threat Self-review threat. There is clearly a conflict of interest arising if ABC & Co. are both preparing the financial statements of ZEBRA plc and auditing them. This conflict of interest is known as a self-review threat. Downloaded by Chee Y (cheey990@gmail.com) 171 lOMoARcPSD|11199247 172 A n s w e rs t o 14: P ro f e ss i o n al e t h i cs 8 A C C A BT Q ue s t ion Ba nk False An integrity-based approach to managing ethics COMBINES ensuring that the organisation acts within the law with managers also taking responsibility for ethical behaviour. 9 Professional competence and due care It is impossible for you to comment on whether the expenses claimed by the budget holder’s husband are legitimate business expenses or not without seeing details of the accounts themselves. That said, it is likely that you would need to have a qualification (such as a practising certificate) before you are able to give financial advice to anyone. 10 Listed/public interest companies = 10%, other companies = 15% 11 Guarantee of minimum wages Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 14: P ro f e ss i o n a l e t h i cs Answers to multi task questions QUESTION ONE Task 1 Self-review Advocacy Familiarity Intimidation Provision of legal advice to client Practice having acted for client for 20 years Audit team carrying out audit and preparing client’s accounting records Accountant only receiving fees from client if a successful outcome is achieved Task 2 Independent review by a senior partner in the firm This would add to the threat of self-review at the firm level. If the work is divided between different teams and information barriers exist, this might become appropriate. The other options are all suitable safeguards against self-review, although they might not all be sufficient independently. QUESTION TWO Task 1 Personal Professional Social responsibility Reliability Scepticism Courtesy Respect Accountability Timeliness Independence Task 2 Self-interest Advocacy Familiarity Intimidation An audit senior having an affair with a member of the client’s finance team A client threatening to sue an accountancy practice if the practice qualifies the client’s audit report A client giving the audit partner tickets to a major sporting event An accountancy firm providing a client with advice on debt reconstruction and negotiating on the client’s behalf with the bank Downloaded by Chee Y (cheey990@gmail.com) 173 lOMoARcPSD|11199247 174 A n s w e rs t o 14: P ro f e ss i o n al e t h i cs A C C A BT Q ue s t ion Ba nk QUESTION THREE Task 1 Professional competence Professional behaviour Confidentiality Objectivity Task 2 Social responsibility Independence Scepticism Accountability Carrying out responsibilities without bias or prejudice Taking responsibility for own work and decisions Questioning information provided to be able to form an opinion on its reliability Acknowledgement of a duty to act in the public interest Independence Responsibility Timeliness Respect During the meeting the managers discuss an important deadline that staff whom Anne manages have failed to meet. Anne acknowledges that the failure was her fault as team manager and states that she will discuss what happened with her team. During the meeting with her team, Anne asks them to explain the reasons why they failed to meet the deadline and raise any concerns they have with the way the work was carried out. At the end of the day Anne hears that her daughter has been recruited by the Accounts department of an important client of the firm. When she gets in the next morning, Anne emails the Senior Partner to say that she can no longer do any work on that client’s affairs. QUESTION FOUR Task 1 Anne is chairing a meeting of senior managers in the accountancy firm where she works that is due to start at 10am. Although not all the managers have arrived on time, Anne starts the meeting precisely at 10. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk A n s w e rs t o 14: P ro f e ss i o n a l e t h i cs Task 2 Compliance Underpinned by external regulation Integrity Based on assumption that individuals focus on their own self-interest Aims to promote values and responsible behaviour Allows employees discretion in their actions depending on situation Acting in public interest Not acting in public interest An employee of an airline company reporting unsafe practices An auditor of a charity reporting a material fraud An accountant at a listed company reporting illegal accounting to a stock exchange regulator QUESTION FIVE Task 1 An auditor publicly disclosing the identity of a whistleblower at a client organisation All the actions help to protect the public interest except the first one, which may serve to prejudice further investigations or prevent effective prosecution, and may dissuade other whistleblowers from acting in the public interest themselves in future cases. Task 2 Legal Tax avoidance Illegal Tax evasion Tax avoidance is a way of managing tax affairs to mitigate tax liability legally. Tax evasion is illegal. Downloaded by Chee Y (cheey990@gmail.com) 175 lOMoARcPSD|11199247 176 A n s w e rs t o 14: P ro f e ss i o n al e t h i cs Downloaded by Chee Y (cheey990@gmail.com) A C C A BT Q ue s t ion Ba nk lOMoARcPSD|11199247 177 ACCA Practice Examination Business and Technology (BT) Time allowed: 2 hours All questions are compulsory and MUST be attempted Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 178 P rac t i c e e xam q u es t i o n s A C C A BT Q ue s t ion Ba nk Section A All 46 questions are compulsory and must be attempted. 1 Classify the following as either injections into or withdrawals from the economy. Injection Withdrawal Taxation Government spending Saving Export income (2 marks) 2 Which of the following selection tests is a type of aptitude test? Verbal reasoning test Intelligence test Personality test (1 mark) 3 According to Blake and Mouton’s Managerial Grid, a manager who enjoys good relationships with his staff, attending to their needs as required, but has little concern for the results achieved, gives rise to a managerial style that is described as: Country Club Impoverished Middle of the Road Team (2 marks) 4 Which one of the following is NOT once of the classifications included in Maslow’s hierarchy of needs? Growth Self-actualisation Physiological (1 mark) 5 According to Herzberg’s ‘Motivation-Hygiene’ Theory, which TWO of the following would NOT be classed as motivation factors? Annual salary and bonus Job security Responsibility Promotion (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 6 P ra c t i c e e xa m q u es t i o n s According to Kolb, an individual who is able to look at things from different perspectives, is sensitive, imaginative and emotional, is interested in people and prefers to work in groups can be described as having which of the following preferred learning styles? Accommodating Diverging Converging Assimilating (2 marks) 7 Identify whether the following benefits of the appraisal system are relevant to the employee or to the organisation. Explain organisational goals Understand organisational goals Organisation Employee (2 marks) 8 Which section of the human resources cycle is concerned with motivating staff and making sure that they stay with the organisation? Selection Performance Rewards (1 mark) 9 Anya believes that she is superior to the organisation she works for. Her boss finds her quite difficult to manage because she has very strong ideas about how best to do her job. According to Handy, in which of his four cultural stereotypes does Anya belong? Power Role Task Person (2 marks) 10 Janet is a major customer of A Ltd and accounts for 75% of A Ltd’s turnover in the year. Amy owns 60% of A Ltd’s share capital has never missed one of the company’s general meetings. Jack is a reporter for a local newspaper and often reports on local firms such as A Ltd. According to Mendelow, which TWO of the stakeholders should A Ltd involve? Janet Amy Jack (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 179 lOMoARcPSD|11199247 180 P rac t i c e e xam q u es t i o n s 11 Wasim is a part-time worker who has lost his driving licence after accumulating several points for speeding. His employer, B Ltd, has decided that it will be difficult for him to carry out his job if he does not have a valid driving licence. B Ltd has written to Wasim to give its reasons for dismissal in writing. Wasim believes that he has a claim for unfair dismissal against B Ltd. Which TWO of the following statements regarding this scenario are TRUE? 12 A C C A BT Q ue s t ion Ba nk Loss of driving licence is unlikely to be a successful unfair dismissal in a claim by Wasim. B Ltd does not need to give reasons for Wasim’s dismissal in writing, it is sufficient to tell him face-to-face. Only full-time employees may claim for unfair dismissal. There is a minimum period of employment required to claim for unfair dismissal (2 marks) What is the main factor most likely to be responsible for the following? Planning for the long-term is difficult. Interest rates are rising. Wealth is redistributed from accounts receivable to accounts payable. Inflation Deflation Stagnation Unemployment (2 marks) 13 If the price of flights to Berlin from London were reduced by AB Air, then which TWO of the following situations are most likely to arise? The demand for hotel rooms in Berlin would fall. The demand for hotel rooms in Berlin would rise. Rival company CD Air would reduce the price of its flights to Berlin. Rival company CD Air would increase the price of its flights to Berlin. (2 marks) 14 A management structure that has few managers with a wide span of control, where decisions are made quickly and is more susceptible to fraud or error is known as what type of organisation? Long scalar chain Short scalar chain Centralised Decentralised (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 15 According to Anthony’s hierarchy of roles in an organisation, which of the following statements relating to the operational level is NOT true? 16 P ra c t i c e e xa m q u es t i o n s Providers are responsible for ensuring that the infrastructure is available to meet the requirements of the customers. The customers are the beneficiaries of the system. The more efficiently and cost effectively the customers supply their services, the less money that organisation spends on Total Cost of Ownership. (1 mark) Identify whether the following statements are TRUE or FALSE. True False The primary purpose of an external audit is to report any errors to the shareholders of the company being audited. Internal auditors of a company are likely to report to the Finance Director of that company. Auditors will carry out compliance tests if they wish to obtain evidence that the internal controls of an organisation are working satisfactorily. The main aim of substantive testing, when carrying out an audit, is to identify any errors or omissions in the accounts. (2 marks) 17 Non-directive exploration by one employee of another employee’s issues is known as what? Counselling Coaching Mentoring Appraising (2 marks) 18 Which ONE of the following represents the fastest pattern of communication as identified by Leavitt? The circle The ‘y’ The square The wheel (2 marks) 19 The Bank of England has decided to reduce interest rates by one per cent. Which of the following departments in Relion Ltd will be most affected by this decision? Accounts receivable Sales and marketing Treasury (1 mark) Downloaded by Chee Y (cheey990@gmail.com) 181 lOMoARcPSD|11199247 182 P rac t i c e e xam q u es t i o n s 20 A C C A BT Q ue s t ion Ba nk The Staff at Hatters IT Consultancy are organised into a number of departments: Programming Sales Marketing Accounts Members of each of the departments work on cross departmental project teams to meet the needs of their customers and to provide flexibility, What is the name given to the organisational structure in place at Hatters IT Consultancy? Matrix Horizontal Scalar chain (1 mark) 21 Structural unemployment would be most likely to be caused by which of the following situations? Surf instructors being laid off at the end of the holiday season University graduates who are unable to find a job shortly after graduating Recession in the nightclub industry A reduction in demand for steel which leads to the closure of foundries (2 marks) 22 Which of the following writers is members of the Human Relations School of Management? Taylor Adair Mayo (1 mark) 23 Employees of XYZ Ltd have been notified by the Managing Director of the company that there has been a serious fraud committed by a member of staff in the past month. At lunch time, the accounts department are discussing the news that has broken and who has the ultimate responsibility for the prevention of fraud at XYZ Ltd. John thinks that it is the fraud manager. James thinks that it is the head of internal audit. Jackie thinks that it is the external auditors. Jessie thinks that it is the board of directors. Whose thinking is correct about the ultimate responsibility for the prevention of fraud? John James Jackie Jessie (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 24 P ra c t i c e e xa m q u es t i o n s Edward is a team member who is dynamic and thrives on pressure. He tends to be the one to challenge and push other team members to the extent that he sometimes annoys or upsets them. He does, however, tend to be the one to bring the team successfully through difficult periods. According to Belbin, Edward’s team role is described as which of the following? Co-ordinator Shaper Implementer Plant (2 marks) 25 Which TWO of the following are ‘interpersonal’ roles of management, according to Mintzberg? Figurehead Entrepreneur Spokesperson Liaison (2 marks) 26 It is company policy at FRAC Limited not to look too closely at the recoverability of its debts, which results in some debts which are not recoverable remaining on the books of FRAC Limited as recoverable. Could FRAC Limited’s actions be considered to be a fraudulent activity? 27 No – because none of FRAC Limited’s customers have been overcharged for goods or services Yes – because other customers may be being overcharged as a result of FRAC Limited’s debt policy No – because there isn’t any cash involved Yes – because it overstates the assets and profits of FRAC Limited (2 marks) Which leadership approach sees the leadership process as being made up of three interrelated variables: task needs, the individual needs of group members and the needs of the group as a whole? The managerial grid Dispersed leadership Action-centred leadership Contingency theory (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 183 lOMoARcPSD|11199247 184 P rac t i c e e xam q u es t i o n s 28 A C C A BT Q ue s t ion Ba nk Which TWO of the following are advantages of a computerised accounting system over a manual accounting system? Quicker calculations can be performed Automatic correction of errors made by the data entry clerk Easier presentation of information in a variety of forms (1 mark) 29 Which of the following appraisal methods provides input from the most people to the appraisal of an employee? 360 degree feedback Peer appraisal Self-appraisal Upward appraisal (2 marks) 30 Which TWO of the following are fundamental principles of the International Federation of Accountants’ Code? Confidentiality Reliability Social responsibility Integrity (2 marks) 31 Identify which TWO of the following statements are NOT true. 32 Public sector organisations are owned by the government. A private sector organisation is owned by the shareholders of the organisation. Organisations owned by private owners are always known as limited companies. A non-government organisation is a business owned by the workers and customers who share the profits. (2 marks) Which of the following is NOT an advantage of an organisation having a narrow span of control? It is easier to control staff. It costs less money to run because fewer managers are required. Less management skill is required. (1 mark) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 33 P ra c t i c e e xa m q u es t i o n s Identify TWO of Porter’s five competitive forces from the list shown below. Threat of substitutes Threat of complements Threat of new entrants Threat of suppliers (2 marks) 34 Which of the following is NOT an element of monetary policy? Interest rates Taxation Credit controls (1 mark) 35 If a government’s income is greater than its expenditure, then which of the following situations will arise? Public Sector Borrowing Requirement (positive/negative) Budget (surplus/deficit) Positive Negative Surplus Deficit (2 marks) 36 Which of the following will be unlikely to occur when an organisation is delayering? Increase in the average span of control Increase in the average number of middle management jobs Decrease in the length of the scalar chain (1 mark) 37 The ACCA Code of Ethics and Conduct states that the public may perceive that the objectivity of a member is likely to be jeopardised when the fees (for audit and recurring work) for one client (or group of clients) represent a significant proportion of the firm’s total fees. Complete the following table to identify what proportion of fees the Code identifies as being a significant proportion. Listed companies 10% 15% Judgement Other companies (2 marks) 38 Which of the following would NOT be classed as a connected stakeholder? Suppliers Shareholders Executive directors Customers (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 185 lOMoARcPSD|11199247 186 P rac t i c e e xam q u es t i o n s 39 A C C A BT Q ue s t ion Ba nk Legislation created by an Act of Parliament in the United Kingdom is known as what? Primary law Secondary law Common law (1 mark) 40 Which of the following is NOT a feature of an effective internal control system? Audit Organisation Personnel (1 mark) 41 Who, in an organisation, is ultimately responsible for adhering to the Data Protection Act 2015? Data controller Data entry clerk Data supervisor (1 mark) 42 SWOT analysis is a method of environmental analysis which looks at the strengths, weaknesses, opportunities and threats of an organisation. Identify which parts of the analysis relate to an internal appraisal and which parts relate to an external appraisal by completing the grid below. Internal appraisal External appraisal Strengths Threats Opportunities Weaknesses (2 marks) 43 Which TWO of the following ‘Ps’ in the marketing mix apply specifically to the service industry? People Price Promotion Processes (2 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk 44 P ra c t i c e e xa m q u es t i o n s hadn’t been any problems caused to consumers. With respect to the Agency theory, PPP Limited is adopting which type of strategy? Proactive Reactive Defence Accommodation (2 marks) 45 Consider the following statement and identify whether it is TRUE or FALSE: The preparation and filing of annual accounts by limited companies is a requirement of HM Revenue and Customs. True False (1 mark) 46 Which of the following audits is most likely to take place in a not-for-profit organisation? Management audit Systems audit Efficiency audit ‘Value for money’ audit (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 187 lOMoARcPSD|11199247 188 P rac t i c e e xam q u es t i o n s A C C A BT Q ue s t ion Ba nk Section B All six questions are compulsory and must be attempted. QUESTION ONE Background Below are descriptions of the roles of four components of Mintzberg’s organigram. A B C D Conversion of direction into tasks and procedures Provide output of organisation Standardise through procedures and checking Provision of organisational direction Task 1 Match the role descriptions to the list of components below. I II III IV Strategic apex Technostructure Middle line Operating core (2 marks) Task 2 Identify which of the following are features of tall organisations and which are descriptions of flat organisations Tall Flat Limited opportunities for promotion Managers have wide span of control Expensive to operate Decisions take a long time to be implemented throughout the organisations (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk P ra c t i c e e xa m q u es t i o n s QUESTION TWO Task 1 Identify which FOUR of the following are threats to compliance with the fundamental ethical principles in the IFAC and ACCA Codes of Ethics. Confidentiality Scepticism Advocacy Accountability Self-review Familiarity Empowerment Intimidation (2 marks) Task 2 Which of the following is the best description of a business’s ethical values? Concepts that require staff to identify and address ethical threats Norms and standards of behaviour that the board believes will help the business achieve its objectives Standards that ensure that the organisation and its staff and directors are answerable for the consequences of their actions Standards of behaviour that ensure that managers and staff can work with each other, and with other key business stakeholders such as customers and suppliers (2 marks) (Total = 4 marks) QUESTION THREE Task 1 Complete the following sentence using the choices below. Consumers’ desire to maximise total utility means that the ratio of (1) _________ to (2) _________ is equal for each good. A B C D E F Total utility Average utility Marginal utility Quantity demanded Quantity supplied Price (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 189 lOMoARcPSD|11199247 190 P rac t i c e e xam q u es t i o n s A C C A BT Q ue s t ion Ba nk Task 2 Identify which of the following would cause the demand curve for long-distance train travel within a country to shift right, which would cause the demand curve for long-distance train travel to shift left and which would have no impact upon it. Shift right Shift left No movement A television series showcasing the pleasures of rail travel An increase in air fares due to a government levy on air travel An inflation-linked increase in rail fares A strengthening of the exchange rate, meaning that more people take holidays abroad (2 marks) (Total = 4 marks) QUESTION FOUR Background Mustafa has recently been appointed as a line manager for the first time. He is concerned about how one of his staff, Kate, is managing her time. Tasks of lesser importance without definite deadlines are often completed quickly, but Kate sometimes misses her deadlines on preparing monthly accounting information, which is her most important work. She also does not seem able to respond quickly to urgent requests. Task 1 Which of the following would NOT be a way to deal with the problems that Kate is experiencing? Establishing a deadline for every task Giving Kate assistance so that she can delegate other tasks if she is called on to carry out an urgent task quickly Giving the task of preparing monthly accounting information to someone else, so that Kate can get on with doing the work that she does most efficiently (1 mark) Task 2 Mustafa’s line manager has recommended that he should give Kate counselling on how to improve her time management. Mustafa is unsure of how counselling differs from coaching and mentoring and has asked for advice. Fill in the gaps in the sentences below with the activity it describes. I II III Counselling Mentoring Coaching A ______ involves showing the subordinate how to perform tasks as part of a learning and development programme. B______ is a long-term relationship that enhances the subordinate’s personal and career development. C____ involves discussion of specific problems and therefore boosting the subordinate’s ability to take responsibility for personal performance improvement. (3 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk P ra c t i c e e xa m q u es t i o n s QUESTION FIVE Task 1 Which FOUR of the following should be included in the accounts of a private company? An income statement A statement of financial position An auditors’ report An operating and financial review A corporate governance report A directors’ report (2 marks) Task 2 A business’s financial system is made up of a number of subsystems, including the following. A B C D Sales invoicing system Purchase invoice system Payroll system Credit control system Match the features listed below to the subsystems to which they relate. I II III IV Highlighting of payments that are not matched to orders Highlighting credit limits being exceeded Allowing customer-specific discounts Allowing electronic filing of HMRC forms (2 marks) (Total = 4 marks) QUESTION SIX Task 1 Fill in the gaps in the sentences below with the name of the relevant management theorist. Taylor Fayol Mintzberg Mayo A______ emphasised five primary functions of management – planning, organising, commanding, controlling and coordinating, whereas B____ focused on three roles – interpersonal, informational and decisional. C ____ emphasised the importance of work satisfaction, founded on social relationships, whereas D ____ believed that high productivity was based on analysis of the tasks required and detailed training and supervision of each worker in the tasks that they were given to do. (2 marks) Downloaded by Chee Y (cheey990@gmail.com) 191 lOMoARcPSD|11199247 192 P rac t i c e e xam q u es t i o n s A C C A BT Q ue s t ion Ba nk Task 2 Identify which of the following are characteristics of leadership and which are characteristics of management. Leadership Management Concentration on longer-term objectives Concern with methods and timescale Challenging accepted methods of doing things Concern with staff development (2 marks) (Total = 4 marks) Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 193 ACCA Practice Examination Business and Technology (BT) Answers Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 194 P rac t i c e e xam a n s w e rs A C C A BT Q ue s t ion Ba nk Section A 1 Injection Withdrawal Export income Taxation Government spending Saving 2 Verbal reasoning 3 Country Club 4 Growth 5 Annual salary and bonus Job security Diverging 6 7 Organisation Explain organisational goals Employee Understand organisational goals 8 Rewards 9 Person 10 Janet Amy Loss of driving licence is unlikely to be a successful unfair dismissal in a claim by Wasim. There is a minimum period of employment required to claim for unfair dismissal. 11 Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk P ra c t i c e e xa m a n s w e rs 12 Inflation 13 The demand for hotel rooms in Berlin would rise. Rival company CD Air would reduce the price of its flights to Berlin. 14 Short scalar chain 15 The more efficiently and cost effectively the customers supply their services, the less money that organisation spends on Total Cost of Ownership This is wrong it should be ‘providers’ not ‘customers’. 16 True False Internal auditors of a company are likely to report to the Finance Director of that company. Auditors will carry out compliance tests if they wish to obtain evidence that the internal controls of an organisation are working satisfactorily. The main aim of substantive testing when carrying out an audit is to identify any errors or omissions in the accounts. The primary purpose of an external audit is to report any errors to the shareholders of the company being audited. The primary purpose of an external audit is to give an opinion on whether the financial statements of an organisation give a true and fair view of the profit or loss and financial position of an organisation. The internal auditors of a company are likely to report to the Board of Directors (or the audit committee, if there is one), not to the Finance Director. 17 Counselling 18 The wheel 19 Treasury 20 Matrix 21 A reduction in demand for steel which leads to the closure of foundries Downloaded by Chee Y (cheey990@gmail.com) 195 lOMoARcPSD|11199247 196 P rac t i c e e xam a n s w e rs A C C A BT Q ue s t ion Ba nk 22 Mayo 23 Jessie 24 Shaper 25 Figurehead Liaison 26 Yes – because it overstates the assets and profits of FRAC Limited 27 Action-centred leadership 28 Quicker calculations can be performed Easier presentation of material in a variety of forms 29 360 degree feedback 30 Confidentiality Integrity Organisations owned by private owners are always known as limited companies A non-governmental organisation is a business owned by the workers and customers who share the profits 32 It costs less money to run because fewer managers are required 33 Threat of substitutes Threat of new entrants Taxation 31 34 Fiscal policy is government policy on public borrowing and public spending and taxation. Therefore, taxation is not an element of monetary policy. Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk P ra c t i c e e xa m a n s w e rs 35 Public Sector Borrowing Requirement (positive/negative) Positive Negative Surplus Deficit Budget (surplus/deficit) 36 Increase the average number of middle management jobs This is not correct, these jobs will be reduced. 37 15% Listed companies 10% Judgement Other companies Internal appraisal External appraisal Strengths Threats Opportunities Weaknesses 38 Executive directors (they are internal stakeholders) 39 Primary law 40 Audit 41 Data controller 42 43 44 People Processes Proactive Downloaded by Chee Y (cheey990@gmail.com) 197 lOMoARcPSD|11199247 198 P rac t i c e e xam a n s w e rs A C C A BT Q ue s t ion Ba nk 45 False 46 ‘Value for money’ audit Downloaded by Chee Y (cheey990@gmail.com) lOMoARcPSD|11199247 A C C A BT Q ue s t ion Ba nk P ra c t i c e e xa m a n s w e rs Section B QUESTION ONE Task 1 A III; B IV; C II; D I Task 2 Tall Decisions take a long time to be implemented throughout the organisations Flat Limited opportunities for promotion Managers have wide span of control Expensive to operate QUESTION TWO Task 1 Advocacy Self-review Familiarity Intimidation Norms and standards of behaviour that the board believes will help the business achieve its objectives. Task 2 QUESTION THREE Task 1 (1) (2) C Marginal utility F Price Task 2 Shift right Shift left No movement A television series showcasing the pleasures of rail travel An increase in air fares due to a government levy on air travel An inflation-linked increase in rail fares A strengthening of the exchange rate, meaning that more people take holidays abroad Downloaded by Chee Y (cheey990@gmail.com) 199 lOMoARcPSD|11199247 200 P rac t i c e e xam a n s w e rs A C C A BT Q ue s t ion Ba nk QUESTION FOUR Task 1 Giving the task of preparing monthly accounting information to someone else, so that Kate can get on with doing the work that she does most efficiently Task 2 A III; B II; C I QUESTION FIVE Task 1 An income statement A statement of financial position An auditors’ report A directors’ report Task 2 A III; B I; C IV; D II QUESTION SIX Task 1 A II; B III; C IV; D I Task 2 Leadership Management Concentration on longer-term objectives Concern with methods and timescale Challenging accepted methods of doing things Concern with staff development Downloaded by Chee Y (cheey990@gmail.com)
