Answers 1. C Boundaries might be physical or social 2. C 3.

C Information at this level is for the purpose of helping middle managers to monitor and control 4. B This study is part of the human relations school of management theory, and describes the importance of groups within an organisation 5. D These are the unspoken rules which 'programme' ways of thinking and behaving, without being consciously recognised 6. B A is external and C is internal 7. A A Compliance-based approach means meeting legal obligations, but not going any further. 8. D The other options reflect either an emphasis on short term results, or a lack of independent scrutiny 9. B All of the other options are covered by other areas of the law or other forms of regulation 10. C The other options are either inaccurate or not necessarily applicable to all businesses 11. D There has been a growing realisation that information is a resource and that it has many of the characteristics of any other resource 12. B Answer A is the wrong way round and C is not specific enough. 13. A Buyer power is low due to loyalty scheme and location. Supplier power is high as rely on one supplier for point of differentiation, Threat of new entrants is high due to vacant locations and Bee being successful will attract competition. 14. D These reports are entirely voluntary 15. A This is the role of the Financial Reporting Review Panel (FRRP) 16. B This may be produced every time the system is run or at the end of each month. The other options relate to other systems or controls 17. C Purchasing is defined as 'the acquisition of material resources and business services for use by the organisation' 18. A The Operating Core turn inputs into outputs. Option B describes the technostructure and option C is The Strategic Apex

19. A The other options describe executive committees (B); joint committees (C) and subcommittees (D) 20. C Product orientation 21 A Such information is available from a wide range of sources in the external environment 22. B Role culture is typical in bureaucratic organisations. Authority is based on function and position and the business operates in a stable environment 23. D When people work together, they establish social relationships and customary ways of doing things 24. C Option A refers only to shareholders, & option B is inaccurate 25. A Option B relates to timeliness; Option C to courtesy; Option D to respect 26. B Most reports want to see a significant number of non-executive directors on the board 27. C Monetary policy includes using credit control, interest rates and exchange rates to manage the economy. Country T is using BOTH of the first two. Therefore the answer is C, not A or B. Fiscal policy is where a expenditure and revenue are used. 28. D This feature is more likely to be an advantage, particularly from the point of view of cost control 29. B The other options are not suitable for inclusion in such a policy, either because they are confidential or not relevant 30. C Some classes have advantage over others in certain areas. Option C does not specifically reflect social class 31. B Activities incur costs, and, in combination with other activities, provide a product or service which earns revenue 32. C The other options are plainly inaccurate 33. C The other options are plainly inaccurate 34. D In such a system, each module may be integrated with others, so that data entered in one module will be passed automatically (or by simple operator request) into any other module where the data is of some relevance 35. B A lower number of management levels will mean that spans of control will have to increase as organisations become flatter

36. A R&D should support the organisation's strategy, and be closely co-ordinated with marketing 37 C The primary stakeholder category thus includes internal and connected stakeholders 38. A They can be used to exchange ideas and get feedback before a decision is taken, or to inform managers 39. D IFAC is an international body representing all the major accountancy bodies across the world 40. A There should be full transparency of directors' remuneration, including pension rights, in the annual accounts 41. C Stagflation is where a country has BOTH high unemployment (here frictional and structural) and high inflation (here imported and seen from government statistics) at the same time. 42. B The micro (or task) environment includes those areas which have a direct impact on the organisation, such as its ability to acquire raw materials, its competitors and its customers 43. B The others are behavioural determinants 44. C The other options are plainly inaccurate 45. A Ad-hoc outsourcing will occur when the organisation has a short-term requirement for increased skills 46 B Outbound logistics is the storage and distribution of finished goods (in this case it would be a car). Service is after sales service to the customer. Procurement is the buying activity. 47. B 48. B 49. B As most non-current assets are relatively expensive, this will probably have to be authorised by more senior management. Once the requisition has been authorised the purchasing function will then find the most appropriate supplier for the asset 50. D Statement 1should read: If the exchange rate falls, exports become cheaper to overseas buyers and so more competitive in the overseas market. Imports will become more expensive and so less competitive against goods produced by manufacturers at home. A fall in the exchange rate might therefore be good for the domestic economy, by giving a stimulus to exports and reducing the demand for imports. Statement 2 should read: A policy of low interest rates or the absence of any form of credit control might stimulate bank