MOCK EXAM F1

1 Which one of the following does not fall within the definition of an organisation given by Buchanan and Huczynski: A B C D E F G H I Service Companies Factories Retail Companies Political Parties Shareholders in a Quoted Company Charities Local Councils The Army, Navy and Air Force Schools (2 marks) 2 Which one of the following is not a recognised means of achieving coordination: A B C D E F Standardised Work Processes Standardised Outputs Standardised Payment Systems Standardised Skills and Knowledge Direct Supervision Mutual Adjustment (2 marks) 3 A hospital manager is considering the use of temporary nursing staff to fill shortages due to sickness. Which level of planning is involved here? A B C Strategic Tactical Operational (2 marks)

The first two steps in strategic planning are strategic analysis and strategic choice. Strategic analysis and strategic choice each break down into three key areas. Which two of the following are not key areas of either strategic analysis or strategic choice: A B C D E F G H External analysis of markets, competitors, the business environment, etc. to identify opportunities and threats SWOT analysis, to provide a comprehensive picture of strengths and weaknesses Stakeholder analysis to understand stakeholder expectations/influence in order to clarify objectives Internal analysis of the firms resources, competences, etc. to identify strengths and weaknesses What is the basis of our strategy? In particular how are we going to compete high quality, low costs? Where do we want to compete? Which markets, countries, products? What is our objective in terms of industry positioning are we seeking No.1 spot? How do we want to get there? Organic growth, acquisition or some joint arrangement such as franchising? (2 marks)

Conflicting demands over allocation of resources is most likely to be a disadvantage from which type of organisational structure? A B C D Entrepreneurial Matrix Divisional Geographical (2 marks)

A manager has been assessed on the Blake and Mouton grid as in the (1,9) position. Which of the following best describes this manager? A B C D He has a high concern for people and task He has a high concern for people and a low concern for task He has a low concern for people and a high concern for task He has a low concern for people and a low concern for task (2 marks)

One advantage associated with a cohesive group is satisfaction of the _______________ needs of the members. Which word correctly completes the sentence? A B C D Creative Social Teamwork Communication (2 marks)

Which of the following types of behaviour is more likely to defuse conflict when dealing with other people? A B C Assertive Aggressive Passive (2 marks)

Which of the following is not a factor required to make a cohesive group? A B C D Team Solidarity Leadership Team Solidity Team Identity (2 marks)

10 Behaviour can be caused, _____________ and is goal directed. Which of the following completes the sentence? A B C D Forced Induced Influenced Motivated (2 marks)

11 Vrooms theory states that peoples motivation is the product of anticipated worth that an individual places on a goal and the _________ of achieving that goal. Which word correctly completes this sentence? A B C D Probability Liability Plausibility Vulnerability (2 marks)

12 Many large organisations have established a computer intranet for the purpose of: A B C D providing quick, effective and improved communication amongst staff using chat rooms providing quick, effective and improved communication to staff providing quick, effective and improved communication to customers providing quick, effective and improved ordering procedures in real time (2 marks)

13 A company uses a computer system for its middle management that can be used to assist with working out possible solutions to management problems. The system includes modelling and forecasting facilities, such as linear regression analysis and statistical analysis. This type of system is: A B C D a management information system (MIS) an expert system an executive information system (EIS) a decision support system (DSS) (2 marks) 14 An Extranet is: A B C D a system that enables the computer systems of two different organisations to communicate with each other an Intranet system that also provides access to certain selected external users the provision of IT services for a computer network by an external organisation a computer network that uses dedicated communications links for security purposes. (2 marks)

15 Which of the following is not one of the four macroeconomic policy objectives of governments? A B C D Economic Growth Inflation Unemployment Balance of Trade (2 marks)

16 Which one of the following would cause a fall in the level of aggregate demand in an economy? A B C D A decrease in the level of imports A fall in the propensity to save A decrease in government expenditure A decrease in the level of income tax (2 marks)

17 Which of the following policies for correcting a balance of payments deficit is an expenditure-reducing policy? A B C D Cutting the level of public expenditure Devaluation of the currency The imposition of an import tax The use of import quotas (2 marks)

18 Which of the following would not correct a Balance of Payments deficit? A B C D Re-valuing the currency Raising domestic interest rates Deflating the economy Imposing import controls (2 marks)

19 You are convening a meeting. Which one of the following would you be doing? A B C D Deciding on the individuals who will be attending the meeting Drawing up an agenda for the meeting Issuing a notice of the meeting Writing up the record of the meeting (2 marks)

20 Since joining the project team, your friend has learned quite a lot about formal meetings, but she has never come across the term motion. One of the following is your explanation of what a motion is when referring to a meeting. A B C D It is an objection to the chair about an alleged irregularity in the convening, constitution or conduct of the meeting It is a stand-in for an absent member, who has the right to be present but not to speak It is an interruption of the proceedings of a meeting before they have been completed It is a proposal put to a meeting (2 marks)

21 There are a number of recognised qualities of a good chair. Which one from the following list would not be acknowledged as such? A B C D A sound knowledge of the relevant regulations The ability to be decisive Skill in communicating rulings clearly but tactfully A thorough understanding of the motion in question. (2 marks)

22 Investigation into the nature of ethical concepts and propositions is called: A B C D Meta-ethics Normative ethics Applied ethics Environmental ethics (2 marks)

23 Which of the following would reduce the agency problem in a large quoted company? A B C D Pay the directors a fixed amount of cash each year. Pay the directors a bonus in shares based on the reported profit. Employ the directors on a rolling five-year contract. Offer the directors large contractual parachute payments (compensation payments if they are removed from office). (2 marks)

24 According to the Cadbury Report, corporate governance is the system by which companies are: A B C D Run in the interests of all stakeholders. Run in the interests of the shareholders. Directed and controlled. Administered within the law. (2 marks)

25 Which of the following are legitimate stakeholders in a company? (i) Shareholders (ii) Past employees now receiving a pension (iii) Local government (iv) Investors in debentures issued by the company A B C D (i) and (iii) only (i), (ii) and (iii) only (i), (iii) and (iv) only (i), (ii), (iii) and (iv) (2 marks)

26 To which of the following bodies are companies not generally accountable in financial terms? A B C D Tax Authorities Local Government Central Government Departments Competition Authorities (2 marks)

27 What is a plan expressed in quantitative terms for a specified future period of time? A B C D A Standard A Policy A Control Limit A Budget (2 marks)

28 Which of the following is not required in the financial statements of a small company prepared in accordance with International Accounting Standards? A B C D Balance Sheet Income Statement Cash Flow Statement Auditors Report (2 marks)

29 Which of the following responsibilities would not be given to a typical treasury department? A B C D Preparing the annual report and accounts for publication Advising whether new funds should be raised by a share issue or by a loan Managing the bank relationship Preparing regular cash flow forecasts (2 marks)

30 Which of the following sources of finance is mot appropriate to finance the building of a new factory? A B C D Bank Overdraft Five-Year Loan Thirty-Year Loan Hire Purchase (2 marks)

31 Who gains benefit from the external audit of a companys financial statements? A B C D The directors only The shareholders only Only the lenders of funds to a company All readers of the financial statements (2 marks) 32 To whom is an external audit report addressed? A B C D The Directors The Audit Committee The Shareholders All readers of the financial statements (2 marks)

33 Which categories of audit are typically required by law for all companies? A B C D Neither internal audit nor external audit Internal audit only External audit only Both internal audit and external audit (2 marks)

34 Who is responsible for there being satisfactory internal controls within a company? A B C D The Board of Directors The Audit Committee The Internal Auditors The External Auditors (2 marks)

35 Which type of audit is concerned with the evaluation of the internal controls of an organisation? A B C D Substantive Audit Systems Audit Operational Audit Value for Money Audit (2 marks)

36 Which of the following is not one of the components of internal control? A B C D The entitys risk assessment The documentation of control procedures The monitoring of controls The control environment (2 marks) 37 Which of the following is not a necessary ingredient of a fraud? A B C D A deliberate act Collusion between two or more persons Deception An objective of unfair advantage (2 marks) 38 Which of the following factors suggests an increased risk of fraud and error in a companys recording of its transactions? A B C D Simple Corporate Structure Well-Resourced Internal Audit Department Stable Business Environment Employees paid bonuses depending on sales achieved (2 marks) 39 Why would auditors be interested in examining large credit notes issued at the start of the financial year? A B C D Credit notes suggest non-current assets may be being stolen Credit notes suggest window-dressing of sales Credit notes suggest cash may be being stolen Credit notes suggest purchases may be misstated (2 marks) 40 When an organisation has to choose the content of the advertisement it will depend on: 1) Type of Organisation 2) Type of Job 3) Internal or External Recruitment 4) Choice of Medium A B True False (2 marks)

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41 During the appraisal interview the appraiser needs to demonstrate the following skills: A B C D E Questioning Listening Persuading Verbal Communication Coercion

Which of the above is incorrect? (2 marks) 42 Which of the following is not one of the learning styles postulated by Honey and Mumford?: A B C D E Theorist Reflector Assimilator Activist Pragmatist (2 marks) 43 Development is the planned and systematic modification of behaviour through learning events, programmes and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out their work effectively. A B True False (2 marks) 44 Job analysis is the process of identifying the purpose of the job and its component parts, and specifying what must be learnt in order for there to be effective performance. A B True False (2 marks)

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45 Which of the following are not characteristics of objectives: A B C D E F Specific Motivational Attainable Realistic Time Bounded Beneficial (2 marks) 46 Which of the following skills is not one of the skills that the counsellor needs to demonstrate? A B C D E Observant Sensitive Empathetic Advisory Discreet (2 marks)

47 Which of the following is not part of the communication process? A B C D E F Sender Message Method Receiver Distortion Feedback (2 marks)

48 Which of the following are not one of the four of the most important reasons for lateral communication: A B C D E F Task Co-Ordination Problem-Solving Information Sharing Conflict Resolution Specifying Job Instructions Feedback from Employees (2 marks)

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49 Horizontal communication may occur in an organisation that is managed in an authoritarian style. A B True False (2 marks)

50 According to Schein, there is a strong link between culture and ------------. Which word best fills the blank? A B C D Management style Leadership Influence Size of the organization

(2 marks)

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