Foundations in Accountancy/ACCA

BUSINESS AND TECHNOLOGY (FBT/BT)

Total points 67/80

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Question ( 1 ) Which of the following is NOT a key feature of organisation ? 2/2

Controlled performance

Collective goals

Social arrangements

Creation of a product or service

Question ( 2 )Which of the following organisations is normally found in the 2/2

public sector ?

Schools

Charities

Businesses
 Question ( 3 ) Which THREE of the following did Henri Fayol include in his 2/2
five functions of management? (i) Motivating (ii) Co-ordinating (iii)
Commanding (iv) Controlling

A. (i), (ii) and (iii)

B. (ii), (iii) and (iv)

C. (i), (ii) and (iv)

D. (i), (iii) and (iv)

Question ( 4 ):Peter Drucker grouped management activities or operations 0/2

into five categories. Which of the following is not one of those categories?

A. Setting objectives

B. The job of measurement

C. Planning and control

Correct answer

C. Planning and control

 Question (  5  )Leadership involves activities that are generally people- 2/2
centred. Which of the following doesn’t fall into this category?

A. Creating the culture

B. Inspiring and motivating others

C. Reconciling individual needs with the requirements of the organisation

D. Allocating scarce resources

Question ( 6 )Which of the following describes the ‘impoverished’ style of 2/2

management identified by Blake and Mouton’s managerial grid?

A. High concern for people and a low concern for the task

B. Low concern for people and a high concern for the task

C. Low concern for people and low concern for the task
:
 Question (  7  )What kind of power is used by a human resources manager 0/2
who controls access to information about employee salaries?

Resource power

Legitimate power

Negative power

Expert power

Correct answer

Legitimate power

Question ( 8 )'Psychologically close' and 'psychologically distant' styles of 2/2

leadership are associated with which writer?

Fiedler

Adair

Ashridge
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 Question ( 9 ) Which type of authority arises from the personality of the 2/2
leader and their ability to inspire devotion?

Traditional authority

Charismatic authority

Rational-legal authority

Leadership authority

Question ( 10 ) Which theorist suggested that management should be 2/2

based on ‘well recognised, clearly defined and fixed principles’, and
advocated the development of a true science of work?  

Drucker

Mintzberg

McGregor

Taylor
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 Question ( 11 )Adair's action-centred leadership model can be considered 2/2
to be part of which of the following schools of thought ?

Human relations school

Classical school

Contingency school

ScientiZc school

Question ( 12 )Jared is a manager at GHF Co. He does not get on well  with 0/2
the employees who report to him and has little real power to punish or
reward the staff for their behaviour. Which of the following management
styles does Fiedler suggest would work best for Jared ?

Psychologically close

Psychologically open

Psychologically Committed

Psychologically distant

Correct answer

Psychologically distant
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 Question ( 13 )According to Heifetz , leaders may simply emerge, rather 2/2
than being formally appointed within the organisation. This is known as
_________________ leadership . Which word correctly completes this
definition of leadership ?

Remote

Varied

Dispersed

Question ( 14 )Responsibility can be delegated by management , as long as 2/2

they also delegate sufficient authority . Is this statement True or False ?

True

False

Question ( 15 )Management is the effective use and co-ordination of 2/2

business resources in order to achieve key objectives with maximum
efficiency . Is this statement TRUE or FALSE ?

True

False
:
 Question ( 16 )The main role of a supervisor is best described as : 2/2

a negotiator of industrial relations within a department

Someone to resolve problems Zrst hand where the work is done

Someone to ensure that speciZed tasks are performed correctly and

e\ciently

The interface between junior and senior managers

Question ( 17 )KJA Co manufactures motorbikes. Which of the following 2/2

statements is consistent with Taylor's theory of scientific management ?

KJA should create employee suggestion schemes to generate ideas for how to
improve its operations

KJA should focus on improving group relations and team spirit within its
workforce

KJA does not need to set detailed standards for hiring workers as it should
provide detailed training for all new employees

KJA's managers should make all key decisions and provide detailed
instructions to workers
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 Question ( 18 )Which of these steps aimed at increasing job satisfaction 2/2
could be attributed to the findings of human relation school?

Creating an open-o\ce environment so people can socialise morefreely

Paying staff for each hour worked or item produced

Managers setting challenging individual targets

Producing an organisational chart so staff are aware of where they stand in the
hierarchy

Question ( 19 )Contingency theorists believe that: 2/2

effective management is primarily a function of successful people management

Organisational achievement is largely contingent upon general economic

circumstances

Major change is dependent primarily upon clarity and communication of the

strategic vision

Lessons of earlier the theorists should be adapted to suit particular

circumstances
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 Question ( 20 )Which of the following are the Three main categories used 2/2
by Mintzberg to group the ten skill that managers need ?

Interpersonal

Decisional

Informational

Individual

Question ( 21 )Fayol defined authority as the : 0/2

Right to give orders

Power to exact obedience

Ability to force workers to follow orders

Ability to delegate responsibility

Correct answer

Right to give orders

Power to exact obedience

:
 Question ( 22 )The senior management of GFD co feel that their main role 2/2
within the business is to ensure that all employees are working towards
achieving the company's goals. Which of fayol's five functions of
management are the management focussing on ?

Planning

Organising

Commanding

Co-ordinating

Question ( 23 )A manager is planning on introducing a new computer 2/2

system into her department . She palns to offer her staff bonuses to
encourages them to use the new system, as well as relying on her own
personal charisma. Which TWO of the following sources of power is the
manager planning to use ?

Reward

Legitimate

Referent

Coercive
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 Question ( 24 ) 2/2

Management impovershed

Country Club

Task management

Team management
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 Question ( 25 )Christine is planning to introduce a new IT system within her 2/2
department , but is unsure about which system to purchase . She has
asked the junior staff within the department to give her their opinions .
However , Christine retains the final say in which system is to be purchased
. According to the Ashridge Management College , What management style
is Christine adopting ?

Joins

Tells

Consults

Sells
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 Question ( 26 )Consider the following two statements .

True False Score

According to
Bennis ,
transactional
leaders offers
rewards to their 0/1
followers in
exchange for
their
compliance.

Contingency
theories of
management
suggest that
certain
1/1
leadership
approaches can
be learnt and
used by
managers .

Correct answers

True False

According to Bennis ,
transactional leaders offers
rewards to their followers in
exchange for their
compliance.
:
 Question ( 27 )The public sector is normally concerned with: 2/2

making proZt from the sale of goods

providing services to speciZc groups funded from from charitable donations

the provision of basic government services

raising funds by subscriptions from members to provide common services

Question ( 28 ) A Co is a company which specialises in forestry . It has 2/2

recently purchased B Co , which runs a chain of recreational resorts. A has
allowed B to build several new resorts on lands which is owned by A, but
which it is no longer able to use . The resorts have proven highly profitable
and popular . Which of the following best explains the reasons for the
improved performance of the combined entity.

Specialisation

Social interactivity

Synergy

Service
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 Question ( 29 )Which of the following statements regarding limited 2/2
companies is correct?

Public limited companies have access to a wider pool of Znance than

partnerships or sole traders

Both public and private limited companies are allowed to sell shares to the public

Companies are always owned by many different investors

Shareholders are liable for any debts the company may incur

Question ( 30 )Which of these organisatoins would normally be classified 2/2

as BOTH a not-for-profit organisation AND a private sector organisation?

Government departments

Partnerships

Charities

Companies
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 Question ( 31  )' An organisation that is owned and democratically 2/2
controlled by its members' To which type of organisation does this
definition relate?

Charties

Non-governmental organisatons

Co-operatives

Private limited companies

Question ( 32 )Westeros is an organisation which imports computers into 2/2

country in order to make a profit . It is owned by fifteen individual investors
, each of whom owns an equal number of shares in Westeros . Westeros is
not a public limited company . Which of the following is likely to be the
most appropriate source of finance for Westeros?

The existing owners of Westeros

Issue of shares to the public

Central government funding

Donations from the public

:
 Question ( 33 )Are the following  statements true or false ?

True False Score

Not-for-
organisations (
NFPs ) have
varied
objectives, which
depend on the
1/1
needs of their
members or the
sections of
society they
were created to
beneZts

the primary
objective of
government-
funded
organisations is
to reduce costs 1/1
of their
operations and
thus minimise
the burden on
tax payers.
:
 Question ( 34 )Charities would usually be classified as a type of non- 0/2
govermental organisation ( NGO ) .

True

False

Correct answer

True

Question ( 35 )Emplyees are _______ stakeholders, while finance providers 2/2

are _______ stakeholders. Which two words fill the gaps in the above
sentence?

Internal , Connected

External , Internal

Connected , Outsiders

Internal , Suppliers
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 Question (  36 )Stakeholders can be classified in several different ways , 2/2
which TWO categories would pressure groups usually be included within ?

Primary

External

Connected

Secondary

Question ( 37 )A is a large company whose shares are owned by a large 2/2

number of individual investors, who do not wish to engage with company's
decision making despite having full rights to do so. When using
Mendelow's matrix this stakeholders group would be classed as:

minimal effort

keep informed

keep satisZed

key players
:
 Question ( 38 )A company is using a communication strategy aimed at 2/2
explaining the rationale behind its actions to its stakeholders. Using
Mendelow's matrix, these stakeholders would be categorised as ' minimal
effort '.

True

False

Question ( 39 )The interests of customers and shareholders can often 0/2

appear to conflict - for example in the quality of goods and services.

True

False

Correct answer

True

Question (  40 )According to Mendelow , which of the following is an 2/2

appropriate approach to take towards stakeholders who have low levels of
power and low levels of interest ?

minimal effort

keep informed

keep satisZed

key players
:
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