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BUSINESS ORGANISATION AND THEIR STAKEHOLDERS

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Ahmed, Arshad and Wasif are starting a partnership business. Ahmed is a major partner having a partnership share of 70%. Ahmed is also the only partner bearing unlimited liability for the debts of the partnership. Arshad and Wasif are the partners with limited liability. What kind of partnership arrangement is it? a. Limited partnership b. General partnership c. Limited liability partnership

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Jonathan is registering a company of which Jonathan is the sole investor. Mark a friend to Jonathan will be regularly paid commission by Jonathan. Mark is likely to be; a. Investor b. Shareholder c. Underwriter d. Guarantor Amir wants to form a public limited company. This will involve registering and floating shares to the public. Amir does not want to list the company on the stock exchange. Is it possible to establish a public company without being listed on the stock exchange? a. Yes b. No TAICHU is the CEO of CHUCHI Company. CHUCHI Company was in enough financial difficulties when TAICHU joined the company. TAICHU created a culture of innovation which brought the company to the blues. All the financial and operational policies of the company depend upon TAICHU. Employees at CHUCHI can t even imagine CHUCHI without TAICHU. Which quadrant of Mendelow s mapping should TAICHU be positioned? a. Those who should be kept satisfied b. Those who should be kept informed c. Those who are key players d. Those who require minimal efforts Steve is a supplier management officer at JBC. His job is to place order with suppliers and manage those orders making sure orders are delivered on time and as

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per order. Steve is paid an hourly rate of 6/hour. He also provides admin. consultancy to MARK LTD. Steve should be placed in which category by MARK LTD.? a. Internal stakeholders b. External stakeholders c. Connected stakeholders

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REALITY LTD. is a company dealing in oil extraction and production of oil products. During the last month, an accident at REALITY LTD. brought a big environmental contamination (poisonous chemicals mixed up with canal water). This brought REALITY LTD. to the attention of many human rights organisations which are publicizing REALITY LTD. as the Human enemies . Where should REALITY LTD. position these organisations? a. Those who should be kept satisfied b. Those who should be kept informed c. Those who are key players d. Those who require minimal efforts To satisfy all the stakeholders seems an impossible target for any company. Often the interests of stakeholders conflict with those of the others. At Johnson & Johnson the CEO believes that satisfaction of the company shareholders is above all. Which of the following stakeholders will be affected by this belief? a. Employees b. Customers c. Pressure groups d. All of the above e. None of the above Jones is the sales manager. Jones has been working hard enough to increase the sales of the company. He trains his sales team regularly. Jones created a good culture among the sales team to enforce his strategy for increasing sales. Is Jones satisfied? a. Yes b. No Fred manufactures hardware for PCs. To increase his business he purchased 60% shares of SOFT PLC. previously a supplier of software to Fred. Since purchasing the shares Fred has become company owner and counted in connected stakeholders of the company. Last month Fred has sold all his shares to WAX PLC. Fred has wound up his manufacturing business for PCs. Fred now comes under which of the stakeholders? a. Primary stakeholders

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b. Secondary stakeholders

10.EFU purchased a significant number of shares in JET PLC

a public company running airline services and became its main investor. EFU needs to regrow the investment of their customers therefore it purchased JET PLC shares. What stakeholders should EFU be placed in? a. High power, high interest b. High power, low interest c. Low power, high interest d. Low power, low interest

BUSINESS ORGANISATION, STRUCTURE AND STRATEGY


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SMART TECH is a family owned Company. The company has its operations in Computers, Textile equipment and broadband services. The company is planning to expand its operations in Germany by investing there in Laptop market. The directors believe that Germany is the right target for the company as it has the technological infrastructure and technological base available there. GRUSTURIDE is identified by the directors as a possible acquisition target in Germany. What level of strategy does the acquisition of GRUSTURIDE represent? a. Corporate b. Business c. Operational The CFO of CAT is to restructure the accounting function. The CFO needs a structure which enables to gather the experts and make their appointment easy and effective. The CFO wants horizontal status with other departments Which of the following structure is the most suitable for the accounting function? a. Functional departmentation b. Geographical departmentation c. Customer departmentation d. Divisionalisation SUSHI Plc. was initially started by Mr. Sushi as a producer of chemical detergents to wash cloths. Mr. Sushi with his will to take the company to heights focused on the internal market of Beijing and after that he focused on globalization of the

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company. Now SUSHI plc. operates in around 15 countries of the world with its operations in chemical detergents, soaps and other chemical related washing products. Which organization structure is most suitable for SUSHI Plc.? a. Geographical departmentation b. Centralization c. Divisionalisation d. Product focused lines

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CRISIS Plc. is pushed by high costs. The managers are looking forward to reduce the number of employees without losing focus on quality. The manager production needs a structure for his department which enables flexible employees having greater responsibilities and having good understanding of customer needs. Which structure is most suitable in this situation? a. Centralization b. Matrix c. Divisional d. Flat THREE CIRCLES Plc. runs a catering and event management business. The company has traditionally been working wholly on its parts from running a kitchen to running a team of 100 staff for the management of client events. The directors now wish to minimize cost and they are looking for an organization structure that can enable them to achieve their objective. Which of the following structures is best suited for the directors goal? a. Chunked structure (staff will work in small teams to minimize costs) b. Project teams (every event will be taken as a project to be completed within cost, time and quality objectives) c. Flat organization (cutting the level of unwanted layers and thus enabling to save costs) d. Shamrock structure Jenny is appointed as a multi-purpose staff. Her job description involves the following tasks; i. Taking client orders ii. Communicating the orders to the crew iii. Identifying technical requirements of the clients iv. Correspondence with clients Where is the right place for Jenny?

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a. Support staff b. Technostructure c. Operating core

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Marcus built his team well. The team members have a very good informal communication with each other. For every task, the team first makes a meeting where all the working methods and procedures are decided by the team members. They have been so much integrated with each other that all decisions they take are based on consensus. Even a single decision where all team members do not agree is not taken. Marcus sees this as team unity making sure team success in different areas. The team developed by Marcus has which of the following characteristics? a. Team solidarity b. Understanding of each other c. Unity d. Group think PIERSONS Ltd. manufactures a range of products. The company is facing difficulties in the management of these business areas. Control is lost many times. Directors want to establish a structure which creates accountability for every product area. The directors also wish that the company develop its reputation as the best producers of the offered products. Which of the following should the directors adopt? a. Divisional structure (as it will help to separate the products where costs and revenues can be effectively traced and tracked0 b. Product departmentation c. Strategic Business Units (SBUs) (to make sure each unit of the business is working independently) MAKRO is a large departmental store. The company is owned by a group of people who define the business of the company and its vision. The suppliers who dump their products in the departmental store are classified as; a. Contingent workforce b. Contractors c. Professional core competition from its rival SONY which has a big brand name in manufacturing gaming hardware. The launch of Sony s PlayStation 3 caused severe difficulties for X-BOX. May users left X-BOX and moved to PlayStation. Microsoft s strategy for X-BOX is an example of;

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10.Microsoft is developing a strategy for X-BOX. The company faces a tough

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a. Business strategy b. Corporate strategy c. Functional strategy

CONTROL, SECURITY AND AUDIT


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RINGER LTD. runs call center for telecommunication companies. RINGER LTD. has a huge internal audit department which has established hundreds of internal controls in finance, customer relations, supplier management and administration areas. Despite these controls staff is observed coming late, going early, not focusing on their targets, appraisal happening for no use. What is lacking in the internal control system of RINGER LTD? a. Internal checks b. Control tests c. Controls follow up d. Control environment ROBERT Phillips maintains high controls in the finance department. These controls include; i. Maintaining proper invoices ii. Disciplined documentation iii. A risk register iv. A risk manager What kind of controls do the above relate? a. b. c. d. Financial controls Accounting controls Qualitative non-financial controls Qualitative financial controls

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JULIE is asked by her coordinator to investigate a theft of 1500 dollars from the office petty cash box. JULIE in her investigation finds a chit labeling theft for good . When physical check, Julie found that the petty cash box was in bad repairs. Someone broke the lock by a screw gauge. The above situation reflects weak; A. Personnel control B. Locks and passwords

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C. Accounting controls D. Administration controls

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Arthur Anderson in their audit at Enron did their job with dishonesty. Bribed by directors, Anderson were found guilty of giving wrong opinion on the company financial statements. They were involved in the hiding of directors frauds. Which of the following might be a possible cause of Andersons behavior? a. Weak internal controls at Enron b. Low quality firm wide procedures c. Weak internal control environment d. Unprofessional audit team ATKINSON is the head internal auditor of XYZ Corporation. Atkinson is directed by management to conduct an audit in the purchasing department. Directors are of the view that from the last 2 months purchases have not been effective. Low quality inventory was purchased for high price, labor is paid a fixed salary whereas number of hours worked is decreasing day by day. What type of internal audit is required to address the above circumstances? a. Systems audit b. Transactions audit c. Probity audit d. Administrative audit PWC is on audit of STANDARD CHARTERED BANK. Pushed by the bank s management to carry out audit activities early, the auditors have decided to put their reliance on the work of internal auditor as it will enable them to carry out less detailed audit procedures. Which of the following factors should not be accounted for when putting reliance on the work of internal audit department? a. Scope of internal audit b. Number of internal audit staff c. Due professional care d. Organizational status A computer system was hacked by an intruder over the network. The hacker got access into the back end programming of a tax software. The software is now producing reports based on incorrect calculations. This was observed by the company s tax manager in a discussion over a report with the tax junior. What is likely to be the problem? a. Systems integrity b. Data integrity

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c. Weak internal controls d. Lack of software security

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An inventory module is designed to take input of inventory purchased. COLLINS is trying to input the purchase of inventory amounting to $1000. Every time he clicks the OK button, a message is displayed Invalid input. Please enter an amount up to $905 Which of the following controls is it? a. Range check b. Total control c. Input control d. Limit control NIB BANK is having enough security threats over its network of branches. It is anticipated that a group of hackers is constantly trying to hack into the internal network of the bank. The director of information technology has decided to prepare a disaster recovery plan to get ready for the attacks of hackers. Which of the following elements of disaster recovery plan must be carefully planned by the bank? a. Contingency plan b. Staff responsibility plan c. Backup plan to minimize disruption d. Securing the main network areas details to find a fraud involving the misappropriation of $20 million. The head internal auditor directed the team to check every individual transaction, record, file in detail to find the culprit. This audit is; a. Management investigations b. Operational audit c. Systems audit d. Probity audit

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10.The internal auditors at ASTON MARTIN are busy in checking the transactions in

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CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY


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Mr. Thomson runs a successful company THOMSON & THOMSON. The company is owned by the family of Mr. Thomson. Thomson and his 4 sons sit in the BODs of the company. Recently a friend of Thomson s son is given shareholding in the company and made a director Would there be an agency problem? a. Yes b. No Farhan is the executive director of SEAFOODS Plc. running a chain of retail stores selling frozen sea food. Farhan has a wide experience in his field of performance. Farhan is given an opportunity to become a non-executive director in two companies i. FRESH FARM FOODS (running a chain of retail stores selling dairy products) ii. OCEAN BEANS (running a chain of retail stores selling frozen, fried and grilled sea food) Which offer can Farhan accept? a. i b. ii

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Mr. Samson is a loyal executive director of a company. He has been serving as CEO of the company for the last 3 years. At the end of the recent year, Mr. Samson retired from the position of CEO. The BODs seeing his loyalty and super capabilities does not want to lose them. The board has given him an opportunity to be the chairman of the board. Does good corporate governance practices allow this? a. Yes b. No Mr. FUJITSU is the CEO of MALTA Plc. The company picks fresh oranges, pineapples, apples, cherries, strawberries, mangoes, guava and other fruits from farms and prepares juices, cakes and other soft drinks. Mr. Fujitsu recently purchased 20% of the company shares. What Mr. Fujitsu should do regarding this purchase? a. Tell the BODs and the NEDs about the purchase (to maintain his integrity) b. Return the company shares (as this creates a conflict of interest) c. Keep the shares and tell it to no one (as it is the right of Mr. Fujitsu)

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d. Tell the Non-executive directors (to bring this to the attention of the company shareholders)

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A committee is formed in a company the brief of which is to; i. Review the internal control system ii. Review the procedures to manage risk iii. To perform management investigations What should be the title of the committee? a. Risk management committee b. Audit committee c. Committee of NEDs

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Audrina serves as the NED of a particular company. She is doing her job with the utmost loyalty and sincerity. Audrina purchased a high amount of company shareholdings to ensure she is in the shareholders of the company for proper monitoring of executive directors activities. She said in a general meeting with shareholders As I know the hides and seeks of the company, the shareholder party should grant me automatic reappointment as NED and also I would request shareholders to give me a long period of appointment so that I can do my job to the highest standard Should the shareholders allow what Audrina has requested? a. Yes b. No The executive directors of a company are offered the following remuneration; i. 40% fixed salary ii. 40% performance based iii. 20% if achieve the goals in social and environmental areas The performance bonuses are based on company profitability, number of products offered, number of employees appointed, cost minimization and others. The above remuneration package is an example of; a. Stewardship theory (as directors are pushed to work hard and increase the shareholders wealth) b. Agency theory (as directors are pushed to work hard and bribed by their own benefits) c. Stakeholders theory (as the directors are pushed to work hard for social and environmental causes)

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The shareholders of a company believe that the presence of non-executive directors on the board will enable them to keep an eye on executive directors. Also the NEDs will enable a wide perspective to EDs. When appointing NEDs, the shareholders should seek opinion from; a. EDs b. Market surveys (containing reports about NEDs working in other companies) c. Market reports d. Experience basis A survey was conducted by a firm of auditors of EASY Ltd. The survey revealed the following facts; i. The company is run by Mr. Fresco as CEO ii. Mr. Fresco owns a number of company shares iii. There is only one board of directors consisting of executives iv. Mr. Fresco is not in favor of the appointment of NEDs as he believes that the company is in crisis and presence of NEDs will lead to other administrative work distracting the executives from working their targets v. The sales teams are given individual targets to achieve vi. Mr. Fresco also runs another company FRESCO Ltd. Do the above mentioned facts indicate good corporate governance? a. Yes b. No

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10.JDAM Plc. manufactures chemicals. The company was formed during the Second
World War by Mr. JUDITH. Since then the company has been producing chemicals for hand grenades, air bombs, tanks and other explosives. The company initially started its operations in Germany making contracts with NAZI forces and somewhere with German government. After Second World War, the company moved to US, producing explosives for the US army. Now in 2011, the company has its official contracts with the following countries; i. Germany ii. England iii. US iv. France v. Israel vi. Italy vii. Russia The company has established production installments in the remote areas of these countries where new explosives are researched, developed and tested by the company experts. Sometimes the production of these chemicals causes hard damage to environment. The company keeps social responsibility at its heart which was shown by the COO in his speech We aim to safeguard countries by producing defensive equipment rather using these weapons against the countrymen . The company has different social attitudes in these countries. In France, the company operations have not been very profitable. The directors now intend to safeguard the environment with the most necessary anti-environmental damage resources. The plans are to limit the production facilities and making provisions for refurbishing them when their useful lives are wasted. In England, the directors intend to accommodate social responsibility when asked by the government although the most necessary steps are must taken What is the strategy of the company in France and England? a. b. c. d. Reactive in England, Accommodation in France Defense in France, Accommodation in England Proactive in France, Accommodation in England Reactive in England, Defense in France

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DIVERSITY AND EQUAL OPPORTUNITIES


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Josh has four subordinates JIM, TIM, SID AND SANDY. Sandy is Josh s favorite. Whenever Josh appraises the performances of the four, he keeps the test same but assesses Sandy in a polite and flexible manner. What kind of discrimination is it? a. Direct b. Indirect c. Harassment Saima works in the credit card division of BANK ALFALAH. She is the only female worker in the office. Being alone female, she has to face many things including staring by men, cruel laughter on her work and sometimes jokes on women. What is happening with Saima? a. Direct discrimination b. Indirect discrimination c. Harassment d. Victimization SID was not given promotion by his manager. Sid believes that he was the ideal candidate for promotion which was given to another fellow by the manager. When Sid went to the manager, he told Sid to keep quiet if he likes to keep his job with him. What happened to Sid? a. Direct discrimination b. Indirect discrimination c. Harassment d. Victimization JUPITER Ltd. advertised for the appointment of a COO (Chief Operating Officer) The candidate should be at least 45 years of age with 6 years of experience What kind of discrimination is it? a. b. c. d. Direct discrimination Indirect discrimination Direct discrimination partial Indirect discrimination partial

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Mr. SWAN is an administrator in a call center. Mr. Swan is alleged of having bad gestures in the office. The allegations on him involve; i. Putting hands on shoulder of female coordinators ii. Talking with female coordinators for long iii. Chasing them in the office etc. What kind of activity is Mr. Swan involved in? a. b. c. d. Harassment Victimization Indirect discrimination Sexual discrimination

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ABC Company told its recruitment consultant to appoint those candidates mostly who are Oxford graduates. The company believes in quality. Therefore it gives preference to Oxford graduates as they have the highest level of education and skills. Is the company policy discriminatory? a. Yes b. No A government organization offers recruitment opportunities on a fair basis. As a benefit to employees, the family members of the employees are first given preference for appointment in place of their retiring family members. Is the policy discriminatory? a. Yes b. No FABRIQUES is a textile company based in AFRICA. The company employs people from all over the world with different cultures, different educational backgrounds, and different capabilities. The company has a workforce of 1000 people which is the most highly diversified among all similar companies. To manage diversity in the workforce what should FABRIQUES do? a. Appoint a diversity manager b. Train the employees in diversity management c. Appoint career managers According to Pakistani officials policy, the prime minister and the president of Pakistan must be Muslims. Many capable people for the two positions are given no opportunity due to them being Non-Muslims. Is the officials policy fair?

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a. Yes b. No

10.Microsoft has a policy to produce its main products

Windows and Office in different languages for some countries such as China. Other countries such as Pakistan and India are given the standard version of the two products despite their national languages being other than English. Is Microsoft ethical and non-discriminatory? a. Yes b. No

Ethical considerations
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You are an audit junior. In your work at Quick Speed plc, you observed some receipts missing. When investigated you found that Clive Xu, a cashier at Quick Speed plc has theft these receipts. When investigated further you found that Clive s action was motivated by the need of her daughter being hospitalized needing an operation. Clive theft the amount so that he can save the life of his daughter. You feel yourself in a strong duty to communicate this matter to your senior. Which ethical approach you are likely following? a. Deontological approach b. Teleological approach c. Egoism You are the tax clerk in SBP corporation. While carrying a review of the tax paper for the recent years you see that SBP corporation has been misleading the tax authorities by under-recording its sales figures. Also the company has few operations which are taxable but not shown on the tax records. You feel your strong duty to inform tax authorities about this issue but due the threat of the dismissal from the job you have not been doing this. If you inform tax authorities about this situation, what it will be considered? a. Loyalty to the company b. Whistle blowing c. Dishonest employee Johny depp has two business options. One option will give Johny lots of money for himself but it is harmful for the society. The second option will give enough benefit for society but little to Johny. Which option is Johny likely to choose when following Teleological approach?

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a. b. c. d.

1st option 2nd option Both options None of the above

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A doctor during operation of one of his patients removes one kidney and sells it for huge amount to a corrupt dealer. Which two of the following duties is the doctor in breach of? a. Fiduciary duties b. Duty being a doctor c. Duty of faithful service d. Duty to the hospital Amy in his selection interview to BECKS plc tells that she has completed and passed all her ACCA papers in first attempt. However two papers took Amy three attempts to pass. Being an ACCA member, which of the following ethical code is Amy in breach with? a. Integrity b. Objectivity c. Professional competence and due care d. Confidentiality Katara who is an ACCA member has not been filling his CPD (continuing professional development) records with ACCA. It is doubted that Katara is not updating her knowledge and skills. While providing accountancy service to her employer, Katara is in breach of which of the following ACCA code of ethics and conduct? a. Integrity b. Professional behavior c. Objectivity d. None of the above Shao Dre is thinking to establish a Kung Fu centre in Beijing China. The centre will be training students in traditional and modern approaches to Kung Fu. Shao Dre has listened enough about ethics from her friends and is confused about which ethical approach she should establish at the centre. Which of the following approach should Shao Dre adopt? a. Ethics based on rules b. Ethics based on principles Mr. Kong has been providing gifts to Mr. Benz. Some of the gifts contain a new model of the Audi car, a Titan watch and Cigars from Cuba. Mr. Benz is a

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government official responsible for granting licenses to explore oil resources in the country and draining out wastage in the seas of south California. Mr. Kong has been renowned for the smuggling of killing acids and wasting them in the seas. From the situation above which of the following is Mr. Kong seen as doing to Mr. Benz a. Grease money b. Bribery c. License fee d. All of the above

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Alice is the chief accountant at Frozen Corporation, a firm dealing in Frozen foods. James is the Food manager in the same company responsible for food quality. Who of the two has social responsibility for their works? a. Alice b. James c. Alice and James both audit of a bank. After day, on your way to home you received a call from Miss Elizabeth asking you to provide some information about the bank you are on audit of. You denied providing information. When home, you again receive call from Elizabeth who persuades you to meet her at a high class wine bar in the society. Elizabeth shares a drink with you and gives you a signed check of 50000. Bribed by the check you revealed the business plan of the bank to Elizabeth. Elizabeth gives smile and moves out of the bar. Which ACCA code of ethics and conduct you are in breach with? a. Professional behavior b. Due care c. Integrity d. confidentiality

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IDENTIFYING AND PREVENTING FRAUDS


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JOHNY works in the sales ledger area of a company. Johny often pockets cash from company cash account. Johny heard about manager coming for a control visit. To save himself Johny misappropriated the accounts. He took cash from the account of X and put it in that of Y to show that X has paid his invoices which in actual was pocketed by Johny. Which of the following frauds is it? a. Meeting budgets b. Teeming and lading c. Misappropriation of accounts d. Collusion with customers There is no NED in XYZ Corporation. The directors of the company are remunerated half fixed and half based on the performance of the company. For the year ended 31st December 2010, the profitability target was not achieved. The directors are afraid to lose their performance bonuses. To ensure that the bonuses are not lost the directors have decided to drag the sales from January 2011 to December 2010 in good faith. Is the above a fraud by directors? a. Yes b. No JUBILEE Ltd. has diversified its operations in UGANDA, PARAGUAY, ITALY, JAPAN AND CHINA. The company has a reputation of strong internal control system. Its operations are highly monitored by a huge internal audit department throughout. The head internal auditor is highly recognized official. The diversified operations bring which threat to the company? a. Internal threat of frauds b. External threat of frauds BANK ALFALAH is facing a number of credit card defaults. The bank before issuing cards to customers performs detailed investigations. These include; i. Investigating the personal details with police records ii. Investigating the salary and job status with employers iii. Physical inspection of the documents provided iv. Informal investigation of the person

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Despite all these investigations, the bank is unable to obtain a 100% effective, loyal and paying customers. The defaults by customers should be classified in which of the following category? a. Internal factors b. External factors

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FENDER LTD. is facing the following risks of fraud; i. FENDER LTD. having profit blues ii. Rising petrol prices iii. A huge workforce iv. A very diversified organization structure v. Staff dissatisfaction due to killing of their last year s bonuses vi. Managers having enough freedom to operate vii. Rumors about the possible bankruptcy of the company Which of the above risks can t be classified as business risk? a. b. c. d. ii, iv i i, iii None of the above

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The management at WALLMART is deciding to automate their operations. It wants to develop an interactive intranet that will enable company employees to communicate with each other throughout, reconcile their performances and share knowledge and information. Which of the following risks would the company intranet bring? a. Opportunities of fraud for the company employees b. Misuse of WALLMART information c. Internal risks of fraud d. Employees with high computer knowledge might deceive management PWC is on audit of CADBURRY LTD. During their audit, the auditors found that the finance manager in one of the company product divisions is engaged in the misappropriation of company accounts. The auditors also found that; i. The inventory record is not evidenced ii. Sales are increasing, while the GP ratio is decreasing no proper evidence given iii. The company invested in many investment properties which are not properly recorded as per the IFRSs

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iv. The company discontinued its operations in MILKY BAR which is improperly classified as a Non-Current asset v. The salaries of directors as shown in accounts does not reflect their percentages of bonuses and how they are earned Before publicizing these frauds in their report, PWC should communicate these frauds with whom of the following? a. b. c. d. The directors The Non-Executive Directors Audit committee Shareholders

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Han is the CEO of PEEKS Ltd. He also owns a small number of shares in MARS Ltd. on 31st May 2011, the BOD of Han Ltd. decided to take over MARS Ltd. Before the decision was publicized, Han purchased a significant shareholding in MARS Ltd. which is unknown to the BOD of PEEKS Ltd. Han purchased the shareholding through his friend Mickey who actually purchased the shareholding for Han. Who would be considered as the culprit in this insider dealing fraud? a. Han b. Mickey c. Han and Mickey Moly is the finance director of a company. Moly misappropriated the accounts which resulted in a personal gain for Moly of 1 million. Moly is feared of showing this amount in her bank account so she decided to rollover the money. She has decided to invest this amount in a casino from where she intends to earn double of the amount and hide the original source. The investment of Moly in the casino is an example of; a. Laundering b. Layering c. Tipping off d. Integration Fiest to be given to the customers as gift. Every sales person is given a target of selling 100 pieces and on every 10 pieces, the company gives 1 piece as a gift. Azhar sold the hundred pieces but despite giving gifts to customers, he sold the 10 pieces to a shopkeeper and pocketed the money. What fraud Azhar did? a. Collusion with customers

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10.WALLS, as a promotional event allocated 10 pieces of its famous

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b. Misuse of company assets c. Meeting targets d. Bogus supply of goods

Individuals, Groups & Teams


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Y and Z work in ChunChinChan plc. Y is an administrator and Z is a sales representative. Y is an extrovert personality whereas Z is an introvert. Mr. ChuChinMa who is the CEO of the company is unhappy with the performance of Y and Z. This performance problem is likely to be caused by; a. Different job responsibilities b. Less effective managerial style of Mr. ChuChinMa c. Personalities not compatible with the tasks d. Ineffective working method Mark and Zuko work in a textile factory. Mark is production supervisor and Zuko is technical supervisor. Iroh joined them as Production incharge. All of them are of the same age group and have developed good understanding among each other. They go to lunch together, have tea together and have developed a theme of perfection i.e. work hard go fast . This theme if considered in the scenario of group dynamics means; a. b. c. d. Group norms Group conformity Group cohesion Group think

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At Victoria softwares ltd, some people are being collected for a project team. The team manager Mr. Wilson has identified nine team members who are programmers, animators, database handler etc. These nine members do not know each other and have feeling of hiding expressions. This team will be working on a software project for a large multi-national group. Which of the Tuckman s stages the team is in right now? a. Forming b. Norming c. Storming d. Performing

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Cindy stalkford is a member of a production team at the Food for love restaurant. The restaurant is a customized one. Customers call at the restaurant and dictate to the operator the food which they want to prepare for their loved ones. The restaurant guarantees a 2 hour food manufacturing and delivery service. Sometimes it becomes hard for the team to prepare the desired food by customer. In such situation Cindy often finds the way to prepare the food and gives solutions which normally the other members of the team do not propose. Which of the Belbin s team roles does Cindy Stalkford plays? a. Shaper b. Resource investigator c. Plant d. Leader Alfred Johnson is a member of a sales team at Gifts 4 U company. The company prepares gifts items for the customers. There are two production lines. One where gifts are made as per the policy and schedule of the company. Second where the gifts are made on the order of the customers. The company has a reputation of customer care. Alfred looks after the overall manufacturing of gifts with a keen eye of criticism. He also proposes new ideas to the team. Which of the Belbin s team roles is Alfred playing? a. Completer b. Monitor-evaluator c. Team worker d. Specialist At Nikita Corporation, the company is about to launch a new product. The vision is to create a hair conditioner that guarantees hair growth and thickness within 25 days. For this the company has developed a team consisting of four team members. Each team member belongs to a different discipline and has expert knowledge in that area. Which of the following types of the team does this team represent? a. Multi-disciplinary b. Multi-skilled c. Virtual d. Self-managed A particular team leader is giving a speech to his team members. During the speech, the leader emphasizes that the team members must be loyal to the team and no team member should try to out perform by pulling the legs of the other team members. The leader continues we are one team and we have to work selfless for the tem

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7.

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What the team member is emphasizing in the team? a. Team identity b. Team solidarity c. Team objectives

8.

Mr. Gibson and his wife work in an office. Mr. Gibson is the sales director whereas his wife is sales manager. On Monday morning, when Mr. Gibson entered the office, all staff members including his wife said Good morning Sir Which of the following is reflected by the conduct of the staff members? a. b. c. d. Role set Role ambiguity Organization structure Formal behavior

9.

Miss. Chilli Milli is a highly sociable supervisor in the production department of Fast Foods at your door . She has developed a good informal relation with other of her staff. Li Jones, one of the production staff member has been showing poor discipline on his part. Miss. Chilli Milli has a special informal relation as a friend with Li Jones and now is confused how to remand Li Jones Which of the following is valid for Miss. Chilli Milli? a. Role set b. Role ambiguity c. Role conflict d. Role signs La Energiano is an energy drink. The company makes an advertise in which the celebrity after drinking the product jumps from a mountain, grabs the flying eagle and comes down to earth. Which of the following the company wants to affect most? a. Attitude of the public towards the product b. Awareness of the public towards the product c. Perception of the public towards the product d. Get the people like the product

10.La Juciano is a manufacturer of fruit juices. One of its products

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Leading and managing people


1.
Twedle Aitkinsen is a manager at HARBOUR plc. He has the following powers i. To increment the salaries of his employees ii. To order the subordinates for the work iii. Can assign subordinates for work iv. To disrupt the activities at HARBOUR plc by turning employees against the company Which of the above is not the authority of Twedle Aitkinsen? a. b. c. d. i ii iii iv

2.

Susan is a manager in the HR department of a company. She is quite extrovert and spends most of her time listening to people and chatting with them. An assignment has been pending by Susan for more than a week. During the last week, Susan was seen hanging out with colleagues and when asked about the assignment she said she would be completing soon. Which of the following leadership style is reflected by Susan s behavior? a. Impoverished b. Country club c. Middle of the road d. Team Mr. Han communicates with his subordinates frequently. He cares for them and listens to their advices. Also Mr. Han maintains informal relations with his subordinates and sometimes prefers informal communication over formal one. Which of the following leadership style is adopted by Mr. Han? a. PDM b. PCM c. Delegating d. Tells Monarch plc has the following characteristics in its culture i. Strict observance of rules ii. Strong emphasis on system iii. People should surrender against organization iv. Financial incentives as the source of motivation for the staff

3.

4.

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v. Scientific design of the manager s job Which of the following management approach is adopted by Monarch plc? a. b. c. d. Scientific management Huaman relations approach Neo-human relations approach Modern approach

5.

A particular chief executive officer of a company during his speech to the managers tells that managers have a strong duty for planning, controlling, organizing the work, commanding people and coordinating between organizational parts. Which of the following is the chief executive officer following? a. Functions of management by Henri Fayol b. Functions of manager by Peter Drucker c. None of the above A seminar of doctors is being organized by the national association of physicians. All hospitals are invited to participate in the seminar. Mr. Mansoor Ahmed Khan has been elected by his hospital to represent in the seminar. Which of the following Mintzberg managerial roles Mr. Mansoor Ahmed Khan will be playing while representing the hospital in the seminar? a. Presenter b. Liaison c. Figurehead d. Spokesperson Jason is the MD of MegaCorps. He is reviewing some analysis prepared by the financial manager about investing in projects. Jason has to take decision as to which project the company should go with. While taking the decision, which of the managerial roles by Mintzberg is Jason playing? a. Leader b. Figurehead c. Entrepreneur d. Resource allocator Two teams are formed at RESEARCH plc. One time is lead by a manager with following characteristics i. Strong authority exercised by the manager ii. Manager telling the team what to do and expecting the team to do iii. No question of any team member is answered by the team members The second team is lead by a manager with the following characteristics

6.

7.

8.

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I. Little authority exercised by the manager II. Subordinates being involved in decisions III. Constructive criticism being implement in the managerial decisions Which leadership style is reflected by the team managers? a. 1st team tells style, 2nd team sells style b. 1st team consults style, 2nd team joins style c. 1st team joins style, 2nd team consults style d. 1st team tells style, 2nd team consults style

9.

Camilla is the sales director of Joyful ltd. She has been working with her subordinates in a caring and loving way. She has a strong feeling that her subordinates recognize her as her leader. Which of the following by Heifetz will lead you to consider Camilla as a leader not only as a manager a. Her position in the organization b. Her job description c. Her use of power with subordinates water and sells it to the customers. Mendleve has joined the company as a distribution manager. Mendleve has in his team Tony, Mori and Cindy. These three staff members have different needs and different patterns of operating. Mendleve has been in big trouble smoothing over things between them. Being a good leader Mendleeve should consider the whole situation when adapting a leadership style. Which of the following factors constitute a situation according to John Adair? i. Needs of the individual ii. Needs of the task iii. Needs of the group iv. Relationship between manager and subordinates a. i and ii b. ii and iii c. iv only d. i, ii and iii

10.Osmosis plc has been operating a water purifying plant. The company purifies

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Motivation
1.
Polytech Corporation has a reputation of building its employees, grooming them and giving them the right incentives for motivation. The company strongly believes that employees are the most important resource of the company and must be motivated to get higher performance. Which of the following approaches to management is the company likely adopted? a. Human relations approach b. Classical approach to management c. Neo-human relations approach A particular employee is appointed by a company. After selection, the employee is told about the following in an interview with the HR manager i. Your agreement with the company which is currently probationary will be permanent in 6 months based on your performance ii. If the performance remains standard till 1 year, you will be given a 100% increment in your salary iii. If the performance remains standard for another 1 year, you will be given with a company maintained flat iv. Based on 2.5 years standard performance, you will be made the departmental manger Which of the following is being provided to employees? a. Reward b. Incentives c. None of the above A particular manager in a meeting communicates to the employees that if they are not on time for 3 consecutive days, a 25% amount will be deducted from their salary. Going further the manager says if you become late for the fourth consecutive day, it will result in the loss of your jobs. Which of the following approach to motivation is adopted by the manager a. Positive motivation b. Negative motivation A company organizes communication networks between employees. Such networks include employees workshops where employees meet and discuss on

2.

3.

4.

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work-related issues. In addition to work-related issues, they are also encouraged to have informal communication with them. Also the company organizes an annual dinner which is a part of this communication network. Which of the following needs of Maslow s hierarchy is likely to be satisfied by the communication networks? a. b. c. d. Psychological needs Security needs Ego needs Social needs

5.

Employees at Mia Mia ltd are given the following job rewards i. A fixed salary ii. A fixed bonus each year Which of the following needs is the salary package likely to satisfy? a. b. c. d. Social needs Ego needs Self-actualization needs Basic needs

6.

Silly Nadia is given the following rewards by her employer SENSATIONAL plc. i. A basic salary ii. A responsible job iii. Company car iv. Company flat Which of the above is an intrinsic reward? a. b. c. d. Basic salary Responsible job Company car Company flat

7.

Fujitsu ltd provides its employees with the following job related factors i. Salaries ii. Good HR policies iii. Good growth opportunities iv. Better physical working conditions

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Which of the above mentioned factors constitute motivation factors as identified by Herzberg? a. i only b. ii and iii c. i, ii & iv d. iii only

8.

Ching Hong is working in a restaurant as an accounts officer. Ching Hong knows that while working in the restaurant he will be earning more money with flexible timings. Ching Hong has preference for accounts experience and believes that Quiqui restaurant can not provide him with his desired experience in audit, tax, payroll etc. while working at the restaurant which of the following is true about Ching Hong? a. Valence is high, expectancy is high b. Valence is low, expectancy is high c. Valence is low, expectancy is high d. Expectancy is low, valence is high Mr. Tushimama is the administrator of The forbidden city in China. Tushimama is responsible for the repairs, maintenance, cleaning and decorating of the forbidden city. He holds regular meetings with his staff in which the staff members are allowed to participate in the above mentioned matters. Few of the staff members have a feeling that Tushimama asks them for their advices but never implements them in his decisions. Considering the staff members true which of the following characteristic of good participation is missing? a. Consistency b. Certainty c. Clarity d. Commitment promotion in her job. From now on, she will be given more authority over her subordinates and will regularly be involved in decisions regarding department. She will also be given freedom in her work as to how it should be planned and performed Which of the following has Flora s manager adopted? a. Job rotation b. Job enlargement c. Job enrichment

9.

10.Flora has been called by her manger. The manager tells Flora that she has got

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Influences on organisational culture


1.
Monte Carlos works in Flyfal, a public limited company. Flyfal plc operates as a marketing consultant for other companies. It also provides event management services. In Flyfal plc, employees are paid according to the business they introduce into the company. Every month a big amount is paid to the employee who achieves more business for the company. Recently Monte Carlos won 1000 as reward for introducing a huge marketing campaign to Flyfal plc. Which of the following cultures is seen adapted by Flyfal plc? a. b. c. d. Power culture Role culture Task culture People culture

2.

Jack, Jensen and Judi are friends. Jack and Jensen work in Fashionable plc as sales representatives. Judi works in a restaurant. Fashionable plc makes a contract with the restaurant in which Judi works to provide daily lunch for its staff. Which of the following is an external stakeholder for Fashionable plc a. Jack b. Judi c. Jensen Transformers plc has structured itself in the following manner i. Strict organisation structure ii. Strict authorization and approval procedures iii. Proper work schedules iv. Formal disciplinary procedures Which of the following of the Hofstede s cultural types is seen in Transformers plc? a. High power distance b. Low uncertainty avoidance

3.

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c. High uncertainty avoidance d. High masculinity

4.

Edward bought a number of shareholdings in J J Johnson ltd. Edward has the power to contribute in management decisions of JJ Johnson ltd. Due to the large amount of shareholding owned by Edward, JJ Johnson ltd is likely to adapt which of the following strategies regarding Edward a. Minimal effort b. Key player c. Keep satisfied d. Keep informed Clair established a retail business in 1965. This business has now taken the form of an international departmental stores chain. The business strongly follows the beliefs like employees are the most important resource, customer is the key to success; innovation creates progress etc. which were established by Clair. Setting such values and beliefs Clair established the foundations of organisational culture. True or false? a. True b. False Florida Fish ltd is a recently established company. The company s work includes picking up fishes from seas and converting them into frozen foods which is then sell at the retail outlets throughout USA. In a board meeting, it was decided that the company should also enter new markets such as Asia. Following up the decision by the board Florida Fish ltd has designed a company logo and registered it. Which of the following elements of culture does the logo represent a. Behavior b. Artifact c. Rituals Paul Collins, the CEO of Fudafesh ltd has been considering to improve organsiational culture in his company. On Monday evening Paul attended a workshop organized by the Californian institute of culture. In the workshop, Paul listened that it might be the case where there can be more than one culture operating in one organisation. Impressed from this speech Paul is inspired to enforce different cultures at different levels in Fudafesh ltd. Which of the following culture would be most suitable at middle managerial level? a. Power b. Task c. Role

5.

6.

7.

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8.

Mrs. Carlil has a strict belief about system in organisations. According to Mrs. Carlil the following system should be implemented in businesses which are the signs of good organisations. i. Strict roles and responsibilities ii. Distance between managers and workers iii. Obedience to rules iv. Clear managerial authority v. Strong chain of command Which of the following Mrs. Carlil is avoiding in describing a good organisation? a. b. c. d. Managerial command Organisation structure Management based on productivity Informal organisation

9.

At Jigjig ltd employees have the following attitudes i. Obedience of the company rules ii. Regular attendance iii. Proposition of innovative ideas to management iv. No misuse of authority v. Good informal organisation among each other vi. Respect for work vii. Respect for management The employees seem dissatisfied with the company. True or false? a. True b. False the good interpersonal skills, Simpkins has established strong relations with customers who give repeat business to Pays bank. Many customers know Pays bank by the name of Simpkins. A dispute has arisen between the newly appointed director of the bank and Simpkins. The director wants to replace Simpkins by a new customer relations officer. Changing Simpkins by a new officer would cause a strategic downturn to the Pays bank. True or false? a. True b. False

10.Simpkins is a customer relation officer at the Pays bank working since 1998. Due to

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PERFORMANCE APPRAISAL
1.
Appraisal system involves delivering feedback on the performance of an individual or a group. In performance appraisal interview, an interviewer is telling an interviewee what mistakes he did, what were his positive points of performance, where he is lacking, and what he needs to do to better up performance. What kind of feedback is the interviewer giving? a. Positive feedback b. Negative feedback c. Motivational feedback d. None of the above In a brief to subordinates, Julian tells them about performance management. Performance management involves the following; i. Identifying the targets ii. Identifying standards iii. Developing expectations iv. Building up plan for performance What is missing in the above? a. b. c. d. Selecting organizational goals Providing a job description Checking up performance Rewarding on good performance

2.

3.

In a quick review session, McKay asks his subordinates to review their individual performances and communicate the weaknesses to McKay. What may a possible problem in this kind of appraisal? a. Subordinates will quickly review their performance b. Subordinates have a better idea of what they are doing c. Subordinates may hide their weaknesses d. Subordinates may rate them as high performers Tim Cook is identified as prospective project manager at LEEDS constructions. Before appointing Tim Cook the project board is gathering up feedback about him.

4.

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Question were asked from Cook s previous project team members, project sponsors, other project managers. What kind of appraisal is it? a. 180 degree b. Lateral c. Vertical d. Diagonal e. Multi-source

5.

The following card is circulated by a hotel manager to each customer after they dine Area Your comments Staff attitude -----------------------Ambiance -----------------------Food quality -----------------------What kind of appraisal technique does the above table show? a. Grading b. Overall assessment c. Fix criteria assessment d. Results-orientated scheme e. Behavioural incident method

6.

In an appraisal interview, the interviewer offers the interviewee a cup of coffee to relax him. He then puts on the table the appraisal report. Without opening it, the interviewer asks the interviewee to clarify his performance issues. He says to the interviewee Calm down dear, I do not wish to pick up your veins, I just wanna know what s that teasing you, why you aren t showing up your colors, what s that you are losing your mind on Which of the Maier s appraisal interview approaches is shown by the conduct of the interviewer? a. Tell and listen method b. Tell and sell method c. Problem-solving method d. a and c FINLAND PLC runs fun clubs. These fun clubs include games, social events, sports and leisure facilities to members. FINLAND PLC, which once used to be a largest fun clubs giant, has seen a serious decline in its revenue since 2008. A committee was established by top management to investigate the causes of such decline. The committee in its report, identified appraisal of performance as the most important

7.

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cause. In his report the chairman commented FINLAND has good appraisal system. The detailed performances of employees are discussed with them; weak points in performance are also identified but the plans for improving the weaknesses are seen to be little in place. Also at some managerial positions, we found no evidence of how the staff improvement plans are implemented. Appraisal reports of all employees are in place but our survey reveals that only 5 minutes/employee were served in appraisal sessions. All these issues are causing significant decline in revenue for FINLAND PLC as staff is getting more and more autocratic with little or no controls being imposed on them Which of the following barriers are evident in the committee report? a. Bureaucracy and annual event b. Unfinished business and bureaucracy c. Informal chat and bureaucracy d. Informal chat and unfinished business

8.

In appraisal sessions, a manager asks his subordinates the following questions; i. What is your career goal? ii. What kind of life do you want to enjoy? iii. What is your viewpoint about the company iv. How we can improve performance Also, the manager spends approx. 50 minutes in the appraisal interview with each person. The interview sessions take 45 days to complete. Which of the following are the possible pitfalls in the manager s approach of appraisal? a. b. c. d. Relevance and fairness Serious intent and co-operation Efficiency and fairness Relevance and efficiency

9.

An interviewer is discussing the performance problems with the interviewee. He is inviting the interviewee to respond to the performance issues. The interview is on fire with comments and counter comments from both interviewer and interviewee. Which stage of the appraisal interview does the above situation relate? a. Prepare b. Interview c. Gain commitment d. Report

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e. Follow up

10.A manager explains in his speech about the appraisal system. He says

Performance appraisal is a positive process. The main purpose of this is to improve our efficiency by identifying what we are doing and what we are expected to do. It helps in finding our weak points and targeting our performance in those areas. You all should feel good for performance appraisal sessions Is the manager s comment true or false? a. True b. False

PERSONAL EFFECTIVENESS AND COMMUNICATION


1.
John has established a small business as tax consultancy. Three staff members JUAN, JILL and SID accompany John in this business. John is the head of the three. Sid looks for the clients who then communicate it to Jill. Jill immediately arranges a meeting to identify the tax problems and work clients want the business to perform. Jill reports to Juan who performs the consultancy work which is then approved by John. Which of the following communication pattern is active in the business? a. Y b. All channel c. Wheel d. Circle Maureen works in HIGH FLY PLC as an accounts supervisor. Pushed by her high desire to become accounts manager, Maureen is planning to improve her skills and capabilities. She has identified ACCA as bases to become manager. She intends to start her studies next week in an ACCA approved learning provider. Which of the following plans she has made? a. Personal development plan b. Self-development plan c. None of the above Sameer and Vikram work in STEWARD PLC. Sameer is HR manager while Vikram is manager for technical operations. In a meeting Sameer and Vikram communicated over what IT infrastructure they need to develop for the HR dept. What kind of communication flow is it? a. Vertical b. Lateral c. Diagonal

2.

3.

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4.

Baraka bank and Lloyds bank of London have arranged to write off the customers who are defaulters. For this purpose both banks are sharing their defaulter customer lists. What kind of exchange is it? a. EDI (Electronic data interchange) b. EDL (Exchange of defaulter list) c. MMIS (Merged management information systems) Muneeb is a newly inducted accounts clerk. To overcome the initial difficulties of job, Muneeb is put under the strict guidance of Mansoor. Mansoor is an old fellow who guides Muneer in areas such as preparation of general ledger, general entries and books of prime entries. Mansoor also provides induction guidances to Muneer. Which role Mansoor is playing here? a. Coach b. Trainer c. Facilitator d. Counselor Mr. Tim is the CFO of FOODS FOR LIFE. The company has lots of investment in foods business. FOODS FOR LIFE is an international foods chain. Mr. Tim believes in communication and coordination as the base for effective performance. He uses both formal and informal channels of communication to deliver his expectations to his staff. He often uses informal speech during his formal ones. Unfortunately one of the units of FOODS FOR LIFE needs to close due to eroding environmental conditions. Tim has two options for the staff. First is to close the unit and pay the staff their respective compensation. Second is to reposition staff member in other units of the company. Tim wants to have an idea of what the staff members would think of each option. Which communication channels might prove to be best for the situation described above? a. Informal channels (grapevine) b. Formal channels (A staff meeting where everything is discussed with staff) Hina is to complete the following tasks i. A staff meeting to brief staff for the weekly targets ii. A meeting with a business partner which is going to start next month iii. A project report which is to be delivered to the client tomorrow. In which order Hina should perform these tasks? a. i, ii, iii b. ii, iii, i c. iii, I, ii

5.

6.

7.

8.

Farhan needs to communicate overtime schedule to his staff for the next week. Farhan does not want any ambiguity in schedules and want to make them crystal clear to his staff. Which of the following communication tool should Farhan use?

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a. b. c. d. e.

Facsimile Video conference Meeting Memorandum Conversation

9.

ENVIRONMENT FRIENDS is asked to investigate environmental damages caused by one if their clients GREEN CITY. ENVIRONMENT FRIENDS investigated the desired concerns and found many problems and weaknesses at GREEN CITY causing severe environmental damage. The facts are hard and complicated with many of them including many reasons. Which of the following method should the company use to communicate this matter to GREEN CITY? a. Interview b. Conference c. Meeting d. Report e. E-mail needs to clarify things such as; i. Job descriptions of staff ii. Their objectives iii. Introduction of the business iv. The career path of staff over 3 years Which of the following must Jessica avoid to communicate clearly with the team? a. Status barrier b. Technical jargon c. Noise d. Distortion e. Non-verbal signs f. Information overload g. Conflict between team

10.Jessica has to address a newly inducted team of accounts clerks. In his address Jessica

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RECRUITMENT SELECTION
1.
In a selection interview, James is given the following questions to answer; Question Yes No 1. Do you have 3 years of experience? 2. Do you know to handle FT344GTI engine? 3. Do you know to speak good English? 4. Do you hold a professional degree? What kind of selection interview questions does the above table is? a. b. c. d. Probing question Closed question Open question Leading question

2.

The following points are prepared by the HR Director for the appointment of an accounts manager. i. Must have the capability to prepare financial statements ii. Should have good command over IASs and IFRSs iii. Should be able to implement ethical standards iv. Should be able to prepare clear notes to the financial statements v. Should know to correct accounting and financial errors Which of the following documents should accommodate the above points? a. b. c. d. Job description Job specification Person specification Technical specification

3.

Samantha in a selection interview was asked by the interviewer the following question; Of course Samantha, no one would like a job without career boost, would you?

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Which of the following question types is it? a. b. c. d. Leading question Closed question (as Samantha will either say yes or no) Probing question Open question (as Samantha is asked to put her views on)

4.

A person specification is prepared for customer relations officer. In it, it is written i. The CRO should have no children ii. He/she must be good looking iii. Should have a reasonable car iv. Should have will to communicate Which of the following points by Alex Rodgers, do the above points link? a. Physical make-up, disposition, circumstances b. Interests, circumstances, physical make-up c. Attainments, physical make-up, disposition d. Circumstances, attainments, physical make-up An HR manager and line manager are discussing about the job of production supervisor. They are talking about how much responsible should be the supervisor, what skills and capabilities should have, what career prospects are present in the job, where do the job of a supervisor fits in the company. What the HR manager and line manager doing? a. Preparing person specification b. Preparing job analysis sheet c. Preparing job description d. Preparing job specification City bank is about to hire its treasurer. As treasure is a high position in a bank, the HR director is confused as to how he should appraise the candidates for the post. Which of the following approaches should the director adopt? a. Interview b. Interview and test c. Demo d. Interview and references The HR manager is of the view about young candidates for managerial position that; Young candidates are often very energetic but immature. Managerial position must be occupied by a person of a mature age All the candidates for the job were interviewed with this myth.

5.

6.

7.

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What this myth of the manager should be classified as? a. b. c. d. Stereotyping Halo effect Incorrect assessment Logical error

8.

An internal auditor is to be appointed by the BANK OF PUNJAB. The person specification says that the candidate should possess the following qualities; i. Analytical ability ii. He should be enough intelligent to identify a fraudster iii. He should be a person capable of designing and implementing an ideal internal control system iv. Must have good gesture and posture Which of the following do the above qualities relate? a. Perceptual abilities b. Creative abilities c. Spatio abilities d. Spatio-visual abilities An audit manager is explaining the qualities of a good auditor to his audit team. He briefs; i. An auditor should be humble in nature ii. An auditor should have courteous behavior to communicate with clients iii. An auditor should timely perform his duties to the clients iv. An auditor needs to be responsible in his job Which of the following do the above relate? a. b. c. d. Work-based competency Behavioral competency Generic competency Competency for client satisfaction

9.

10.ACCA has two main categories of employers. The first one is gold employers and the
second one is platinum employers. ACCA remains in coordination with all gold and platinum employers so that it can place its members, affiliates and students with them. ACCA is determined to place its members, affiliates and students on job for the credibility of ACCA qualification In this, ACCA is a recruitment consultant to;

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a. Employers b. Members, affiliates and students

THE BUSINESS ENVIRONMENT


1.
BIG CORPS deals in the manufacturing of technological equipment. It s main products include; i. USB disks ii. Scanners iii. High speed security alerts iv. Mini processor chips v. Other functional utilities The company had a big name in UKRAINE. Recently it has expanded its operations in USA and UK. In a meeting, discussing the progress of BIG CORPS the CEO exclaimed Its not that easy nuts. Here we are faced with multiple producers producing all we do, multiple minded customers changing their view to technology hourly, multiple supply channels and a WWE like wrestling competition. We need to innovate otherwise we ll be off soon What kind of environment is likely to be observed in USA and UK? a. Complex environment b. Dynamic environment c. Complex and Dynamic environment d. Unstable environment P & G started its operations in UKRAINE. As soon as it started the UKRANIAN government imposed high regulations on the company such as; i. Submission of environmental reports ii. Mitigation of social footprints plans iii. Sustainable development plans iv. Sea water saving plans P & G now sees it hard to manage its operations as it is pre-burdened by the government through legislations. What these high regulations requirements are called? a. Legal infrastructure of a country b. Legal framework c. Legal eye

2.

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d. Red tapism

3.

The management of GULF DREAM CRUISE finds the following in their operations; i. Highly motivated staff ii. Good financial health iii. Excellent sailing skills iv. Beautiful cruise infrastructure v. Best customer servings in bookings and on cruise vi. Tough competition from competitors vii. Changing economic conditions viii. Changing social attitudes of the people ix. High technological boost x. GREEN legislations by government Which of the following is shown in the above 10 points? a. b. c. d. Complex external environment Dynamic environment Stable environment General and task environment

4.

Fahad works in Karachi Shipyard. He was appointed as an accounts supervisor. He was dismissed by the Shipyard due to Fahad being a Balochi person. Fahad filed a case against Shipyard in the court of law. Fahad s dismissal is an example of; a. Wrongful dismissal b. Unfair dismissal c. Illegitimate dismissal d. Unreasonable dismissal Wasim s personal data was held by his employer. The data included; i. Wasim s salary ii. His bank account number iii. His CV iv. His previous employment records His employer gave Wasim s data to someone without the prior permission of Wasim. Which of the following is not a suitable remedy available to Wasim under Data Protection Act? a. Wasim can seek compensation for the illegal use b. Wasim can apply in the court of law for the correction of his incorrect data

5.

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c. Wasim can sue his employer for the damage or distress caused d. Wasim has a right to access his personal data held by his employer

6.

Natalie Portman sells cosmetic products in her fashion store. Natalie is well known for her products which are highly appreciated by customers. Cindy purchased a kit from Natalie. Natalie had shown Cindy a sample of the cosmetics before purchase. When delivered to Cindy, it was found that some items in the kit were not the same as shown in the sample. Which of the following Acts is not fulfilled by Natalie in her sales to Cindy? a. Contract law (as the delivered kit was not according to contract) b. Sales of Goods Act c. Trade laws (as Natalie is in breach of trading regulations) d. Consumer Protection legislation (as Cindy was not given the right product) The Treasurer of ABC BANK was killed in a road accident. The directors held a meeting to decide his successor but could not find any suitably qualified and skilled person for the designation. One of the director proposed an idea to outsource the bank s treasury work to KPMG so that it could be managed in a professional way till the time a new treasurer is appointed. The proposal was agreed and KPMG was outsourced the bank s treasury department. What kind of outsourcing is it? a. Ad-hoc outsourcing b. Temporary outsourcing c. Project outsourcing d. Partial outsourcing GLIMSY Ltd. deals in food products. The company has its manufacturing facilities in many parts of the country. There is also a specialized department for the purchase of raw materials. The raw materials purchased are first stored in the special warehouses owned by the company off the factories. The raw material is then delivered to factories from where it is manufactured and delivered to sales. The company is facing tough time due to bad economic conditions. Customers are unwilling to pay high amounts for the food products offered by GLIMSY. The directors have now decided to pursue a cost efficient strategy. Which of the following elements of the value chain needs to be controlled by the company? a. Outbound logistics b. Inbound logistics c. Production d. Firm infrastructure (merging the warehouses into factories)

7.

8.

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9.

AUTOFONE sells mobile phones with communication networks. There are mainly four network providers who have contracted with the government for 25 years. AUTOFONE sells mobile phones through shops. It has also a network of online sales. Staff at AUTOFONE describe the customers all pros and cons of the four networks as well as of the mobile phones. The customers then select the phone and network provider as they like. Which of the following is high in case of AUTOFONE? a. AUTOFONE s monotony b. Customer power c. Supplier power d. Rivalry between network providers crew of 40 staff works in each garage. Mike read a news in technology magazine that a new hydraulic machinery is produced which can do work form fixing the bonnets to fixing the engine. It s a costly machine but once installed will enable Mike to save labor cost. The number of crew members will instantly shrink to 15 resulting in savings of labor costs paid. The installment of this machinery will result in; a. Downsizing b. Redundancy c. Dismissal of staff members d. Automation of the garage work

10.Mike runs a chain of auto garages. The garages are built on an area of 2400 sq. ft. A

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THE MACRO ECONOMIC ENVIRONMENT


1.
In UK tax system, the tax structure is as follows Income Non-saving income Saving income range () 1 2440 Nil 10% 2441 37400 20% 20% 37401 40% 40% above The above table represents which tax structure a. Progressive tax b. Regressive tax c. Proportional tax d. Relative tax Dividend income Nil 10% 32.5%

2.

Swedish government is planning the following; i. 5% to be invested in education sector ii. 61% to be invested for country defense iii. 2% investment in road constructions iv. 12% to be given to industries v. 15% to be raised from world bank Which of the following policies would accommodate the above? a. b. c. d. Fiscal policy Monetary policy Revenue policy for government Expenditure policy for government

3.

Tax is the main revenue for government. Mainly there are two tax systems direct and indirect. In country A the ratio of direct and indirect taxes is 7:3 where as in country B it is 3:7. From the above statistics, which country is likely to have more inflation? a. Country A b. Country B c. Equal inflation d. None of the above In Zimbabwe, the power of currency is nearly eroded. People have to pay enough cash even for the purchase of a pen. Lots of people are moving to find a job but

4.

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happy are the ones who are on the job. The country s trade outs are badly hit and the trade ins are increasing high. What is the condition in Zimbabwe? a. Recession b. High inflation c. Hyper inflation d. Stagflation

5.

MODI incorporation runs hair saloons internationally. In country X, the company often changes its prices mostly going up. In an interview to press, Robert hawks said Country X is all the way different. The company established a blanket policy for its rates throughout but the changing costs of labor, materials and overheads have been an overhead for the company pushing it to put up its prices. We are trying our level best for it but we need the government to take active action to take into count what s going on there Which of the following is happening in country X? a. Hyper inflation b. Stagflation c. Demand pull inflation d. Cost push inflation JAMAICA is developing its high market in textiles. Large contracts from UK, US and Germany for textile shifted to JAMAICA recent year but still the government is having high rate of unemployment. When investigated, it was found that textile is a highly technological sector which needs educated and skilled people to work but the Jamaican workforce is mostly illiterate and unskilled causing unemployment What kind of unemployment is it? a. Cyclical b. Frictional c. Structural d. Technological UK government is planning about its monetary value. A team of economists set by the government is trying to assess the impact of fall in the value of pounds on the payment of country s current account Which of the following is the team working on? a. Lagging indicator b. Coincident indicator c. Leading indicator

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8.

Due to the bad economic conditions, businesses in county A are unable to pay high to their labors. Inflation is ever increasing in this country. Consumer goods are going out of an ordinary person s pocket. People are thinking it hard to work at lower labor rates due to which unemployment is increasing Which of the following does this situation relate? a. Frictional unemployment b. Real-wage unemployment c. Cyclical unemployment d. Technological unemployment Automobile industry in country Y is badly hit. The banks used to be a good market for automobiles as they give installment plans to their customer for automobiles. In a recent policy, the government increased the bank rate from 12% to 18% which resulted in an increase in installments charged by the bank to their customers. Inflation is also increasing in country Y. Which of the following would accommodate the above situation? a. Government policy for interest rates b. Monetary policy c. Fiscal policy d. Government policy for spending i. 30 million students and 30 thousand colleges ii. 20 million unemployed people and 20000 factories iii. 60 million citizens and 9000 hospitals Which of the following statement is incorrect? a. b. c. d. Government is having difficulties running the country People are having lower lifestyle Aggregate demand is high than supply Effective monetary policy can help reducing the problems

9.

10.The conditions in country B are;

THE ROLE OF ACCOUNTING


1.
SONY the international producer of electrical goods for home and business purposes wants to structure its accounting function. The company accounts reflect the large size of the business with thousands of accounts and statements. Which of

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the following factors will count more in structuring the accounting function of SONY as compared to EQUI FOR YOU (a local producer of electrical goods for home and business use)? a. Organizational structure b. Complexity in accounts c. Size of the business d. Brand name e. Number of accounts

2.

BIZZY Ltd. is a large public company running chain of hotels in the beach area of Maldives. The company has produced a statement showing the following; i. Future prospects of the company ii. Its plans about its staff iii. Company s growth aspects iv. Career progression for the staff v. Reward programs etc. Which of the following stakeholders are most interested in the above statement? a. Connected stakeholders b. External stakeholders c. Internal stakeholders

3.

At STANDARD CHARTERED BANK, Mr. Wahaj has an office. His main duties for the bank are; i. Identifying good investment opportunities where customer funds can be best managed ii. Identification of the mark-up rate the bank should give customers credit on iii. The management of funds to make sure bank is not out of funds or cash at any time Which of the following is likely to be the designation of Mr. Wahaj at STANDARD CHARTERED? a. b. c. d. e. Cashier Funds manager Management accountant Treasurer Bank trustee

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4.

FISHES IN SEA Company is to prepare its financial statements for the first time. Which of the following should it not take care of when preparing its financial statements? a. IASs (International Accounting Standards) b. IFRSs (International Financial Reporting Standards) c. The requirements of IASB (International Accounting Standards Board) d. GAAP (Generally Accepted Accounting Practice) e. None of the above Ahmed is implementing strict controls in his business such as; i. Using locks and passwords ii. Authorization limits iii. Credit control What kind of controls do the above relate? a. b. c. d. Managerial controls Non-financial controls Administrative controls Accounting controls

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6.

Salma is an assistant to Jahanzeb who is an accounts manager. Salma is currently given a task of preparing a document showing the links of accounts department with other departments in the company. Salma has prepared the following; Accounts section 1. Purchase ledger 2. Sales ledger 3. Accounts dept. as a whole 4. Payroll Relates to . Purchases dept. Inventory control Senior management Human resource department

Which of the above relationship is incorrect? a. b. c. d. 1 2 3 4

7.

Sandra works in BIGBANG PLC. Her job description includes the following matters i. Should the firm borrow or issue shares

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ii. How much should be given to customers as credit iii. How much discount should be given to customers What is the possible job title of Sandra? a. Financial manager b. Management accountant c. Treasurer d. Financial accountant

8.

Tina is having the following problems in her office i. Invoices are missing ii. Documentation is improper iii. Suppliers are being regularly paid but they are constantly invoicing What is shown by the above mentioned issues? a. b. c. d. Weak qualitative controls Proper procedures being implemented Poor management by Tina Weak procedures for recording the documents and events

9.

Flutcher prepares the following brief for his subordinates i. Collection of logical fields is a file ii. Collection of logical records is a database iii. Collection of files is a record Which of the above statements are incorrect? a. i b. ii c. iii d. i,ii,ii e. none The company prepares accounts with regard to the local differences. Which of the following factors is a major in affecting the preparation of accounting records? a. Currency difference b. Ways of doing business c. Economic conditions d. Legal requirements

10.Unilever Ltd. is an international business operating in many countries of the world.

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TRAINING AND DEVELOPMENT


1.
An employee was given education sessions by his employer. The education sessions helped him improve his productivity in work, understand his work requirements, perform better customer liaison and better fit in his job. The education sessions were a means of; a. Training b. Development c. Education Jenny is an active thinker. She always perceives things before trying them. She uses her judgment before trying anything new. Jenny is what kind of learner? a. Behaviourist psychological b. Cognitive approach c. Reflector d. Activist The sales team at PIZZA FOR YOU unfortunately, could not get to their targets last month. In an appraisal by the franchise manager, staff was found blaming a competitor doing more good than PIZZA FOR YOU. One staff member said We did all in an approachable manner but the unmerciful presence of PIZZZZZZA made us spoil our targets What kind of attitude is shown by staff? a. The enemy is out there b. I m my position c. Event fixation d. Myth of the management team Steve started his job as an aeronautical engineer. After a successful time of 4 years in a reputable firm Steve started his further studies of Masters in the same field. During his Masters, he continued to job for PRINCLEY JET airlines which then got Steve done his PHD in the same field after Masters. Which kind of development is observed in Steve s case? a. Managerial (as Steve is now better able to manage his work) b. Personal (as Steve s skills have grown) c. Professional (as Steve has successfully climbed his professional career) d. Career (as Steve is now more strong and stable in his field)

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5.

Martin at General Motors handled a project for EB640GT engine. Unfortunately the project when completed could not rush. Martin has identified the following causes for this; i. Improper understanding of the project work ii. Poor team building of the project team iii. Unidentified customer expectations iv. A shift in technology General Motors has assigned Martin another project for VBE850GTFX engine as Steve is a very capable project incharge. Steve is now preparing complete documentations for VBE850GTFX engine so that he does not do the same mistakes as he did in the EB640GT. Which stage of learning cycle by KOLB is Steve on? a. b. c. d. Experience Abstract concepts and generalisations Applying implications of concepts to a new situation Reflection

6.

Stewart was given a training program by his company. During the training program, Stewart was found with the following behavior; i. Asking for practical examples ii. Thinking on examples given iii. Challenging the examples given iv. Running behind the training time What kind of behavior Stewart had according to Honey and Mumford? a. b. c. d. Reflector Theorist Activist Pragmatist

7.

Hali was inducted as an accounts clerk. His manager has made the following plan for his training i. 6 months recording transactions ii. 6 months updating ledger accounts iii. 1 year preparing financial statements What kind of training is it?

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a. On-the-job b. Off-the-job

8.

Kazim has the following job description i. Liaison with HR department and other departments regarding training ii. Scheduling of the training programs iii. Identification of the training needs iv. Designing the training program v. Validation and evaluation of training programs What is likely to be the title of Kazim s job? a. b. c. d. Admin manager for training Training manager Training facilitator Training incharge

9.

The management at LIFE IS FUN are identifying the effects of training programs on the achievement of targets. It is strictly being observed whether training helped achieve departmental and overall targets. What level of training evaluation by Hamblin is LIFE IS FUN? a. b. c. d. Level 1 Level 2 Level 5 Level 4

10.Faisal is currently having a training program by his bank. Faisal is determined to get
the most from the training program. He regularly attends the training sessions and when home spends his time researching on the internet. He uses his analytical skills to find the roots of everything and is more interested in those aspects of training which directly link to his job. He is having difficulty in training programs due to his slow speed but he is of the view that slow and steady wins the race. Which kind of learner is Faisal according to Peter Honey and Alan Mumford? a. Practical learner b. Active learner c. Deep learner d. To the point learner e. Analytical learner

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BUSINESS ORGANISATION AND THEIR STAKEHOLDERS 1. A 2. D 3. A 4. C 5. C 6. B 7. D 8. A 9. B 10. B BUSINESS ORGANISATION, STRUCTURE AND STRATEGY 1. A 2. A 3. C 4. B 5. D 6. A 7. D 8. B 9. B 10. A CONTROL, SECURITY AND AUDIT 1. 2. 3. 4. 5. 6. 7. D C C B D B A

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8. A 9. A 10. D CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY 1. B 2. A 3. B 4. A 5. A 6. B 7. B 8. B 9. B 10. B DIVERSITY AND EQUAL OPPORTUNITIES 1. B 2. C 3. D 4. A 5. A 6. A 7. B 8. A 9. A 10. A ETHICAL CONSIDERATIONS 1. A 2. B 3. B

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4. A 5. A 6. D 7. A 8. B 9. C 10. D IDENTIFYING AND PREVENTING FRAUDS 1. B 2. A 3. B 4. B 5. D 6. D 7. C 8. C 9. A 10. C Individuals, Groups & Teams 1. C 2. A 3. A 4. C 5. B 6. A 7. B 8. D 9. C 10. A

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Leading and managing people 1. D 2. B 3. B 4. A 5. A 6. C 7. C 8. D 9. C 10. D Motivation 1. A 2. B 3. B 4. D 5. D 6. B 7. B 8. D 9. D 10. C Influences on organisational culture 1. 2. 3. 4. 5. 6. 7. C B C C A B B

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8. D 9. B 10. A PERFORMANCE APPRAISAL 1. D 2. C 3. D 4. E 5. C 6. C 7. B 8. D 9. B 10. A PERSONAL EFFECTIVENESS AND COMMUNICATION 1. C 2. A 3. B 4. A 5. A 6. A 7. C 8. D 9. D 10. F RECRUITMENT SELECTION 1. B 2. B 3. A

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4. A 5. B 6. D 7. D 8. D 9. B 10. A THE BUSINESS ENVIRONMENT 1. B 2. D 3. D 4. B 5. D 6. B 7. B 8. B 9. B 10. A THE MACRO ECONOMIC ENVIRONMENT 1. A 2. A 3. B 4. A 5. D 6. C 7. C 8. B 9. B 10. C

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THE ROLE OF ACCOUNTING 1. C 2. C 3. D 4. E 5. D 6. B 7. A 8. D 9. E 10. D TRAINING AND DEVELOPMENT 1. A 2. B 3. C 4. D 5. C 6. A 7. A 8. B 9. D 10. A

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