2nd MOCK EXAM
BUSINESS & TECHNOLOGY (BT)
Total Marks: 30
Pass Marks: 15
NAME: ___________________________ MARKS OBTAINED: ________________
Marks of each question are indicated in the labeled brackets.
1. Which one of the following statements is true? (2 marks)
A. Limited company status means that a company is only allowed to trade up to a
predetermined turnover level in any one year.
B. For organizations that have limited company status, ownership and control are legally
separate.
C. The benefit of being a sole trader is that you have no personal liability for the debts of your
business.
D. Ordinary partnerships offer the same benefits as limited companies but are usually formed
by professionals such as doctors and solicitors.
2. The stationery and printing company, S Co, has recently upgraded its computers and printers
so that more production has become automated. Many middle managers will now be made
redundant. This is known as: (1 mark)
A. Downsizing
B. Delayering
C. Outsourcing
3. In Porter’s five forces model, which of the following would constitute a ‘barrier to entry’?
A. High capital investment requirements
B. Scale economies available to existing competitors
C. Low switching costs in the market (1 mark)
4. Monetary policy is a government economic policy relating to:
1 Taxation
2 Interest Rates
3 Exchange Rates
4 Public borrowing and spending
Which of the above are correct?
A. 2 and 3
B. 1 and 4
C. 1 and 3
D. 3 and 4 (2 marks)
5. According to the theory of the firm, which of the following statements describes an oligopoly?
A. There are four producers exerting considerable influence in the market
B. There are many producers but they each use product differentiation to distinguish
themselves from each other
C. There are no barriers to entry into or exit from the market
D. There is only one producer in the market (2 marks)
6. Which of the following principles of classical management is challenged by matrix
management? (2 marks)
A. Structuring the organization on geographical lines
B. Structuring the organization on functional lines
C. Decentralization of decision-making
D. Unity of command
7. Mr. Q is a manager of a division which is undergoing a business downturn. He tries to shelter
the workforce from the effects of downsizing taking time for consultation, organizing, counseling
and refusing to institute compulsory redundancies.
Which one of the following cultural types identified in the Hofstede model is this manager most
likely to represent?
A. Low uncertainty avoidance
B. Low power-distance
C. Low masculinity
D. High individuality (2 marks)
8. Which of the following are advantages of having non-executive directors on the company
board? (2 marks)
1 They provide reassurance to shareholders.
2 They can provide a wider perspective than executive directors.
3 They have more time to devote to the role.
4 They may have external experience and knowledge which executive directors do not possess.
A. 2 and 4
B. 1, 2 and 4
C. 2, 3 and 4
D. 1 and 3
9. MTQ Question
(a). The following four components of an organization were identified by Mintzberg:
A Operating core
B Support staff
C Strategic apex
D Middle line
For each of the following jobs, state which component they fit into.
(i). Canteen worker
(ii). Production worker
(iii). Sales manager
(iv). Director (2 marks)
(b). Which two of the following statements are not consistent with Handy’s shamrock
organization?
A The contingent work force consists of employees on long-term contracts
B The professional core should consist of full-time, fixed salary employees
C Self-employed technicians should be hired on a project-by-project basis
D The organization looks for ways that consumers can do part of the work of the organization
(2 marks)
10. All the following statements except one are examples of the advantages that a computer-
based accounting system used by a management accountant has over a manual system.
Which statement is the exception?
A. A computer-based accounting system will always reject inaccurate financial information input
to the system’s database
B. A computer-based accounting system is easier to update as new information becomes
available
C. The management accountant can more readily present financial information to other
business departments in a variety of forms
D. Financial calculations can be performed more quickly and accurately (2 marks)
11. Which of the following circumstances would cast doubt to the external auditor’s ability to rely
on the work of internal auditors?
A. The internal audit function has a direct line of communication to the audit committee
B. No audit manuals or working papers are available for inspection
C. Internal auditors are recruited on technical qualifications and demonstrated proficiency
D. There is evidence that management and directors consistently act on internal audit
recommendations (2 marks)
12. Which of the following most clearly present a personnel risk of fraud? (2 marks)
A. High staff morale
B. Segregation of duties
C. Consultative management style
D. Staff not taking their full holiday entitlements
13. What is the term given to a method of fraud in the accounts receivable area, by which cash
or cheque receipts are stolen, and the theft concealed by setting subsequent receipts against
the outstanding debt? (1 mark)
A. Collision
B. Misrepresentation
C. Teeming and lading
14. Which of the following would NOT form a part of fraud response plan? (1 mark)
A. Fraud awareness training and recruitment controls
B. Suspending staff suspected of fraudulent activity
C. Investigating the activities and contacts of a suspected fraudster
15. Monica is a manager in the finance department of P Co and she has several staff working
for her. She has become quite friendly with most of her staff and they like her and appreciate
that she does everything she can to attend their needs. Which type of managerial style does
Monica have? (2 marks)
A. Task management
B. Impoverished
C. Dampened pendulum
D. Country club
16. According to Drucker, which one of the following is a management task? (1 mark)
A. Developing people
B. Informational
C. Decisional
17. …………………… are capacities that lead to behaviors that meet job demands within the
parameters of the organizational environment. (1 mark)
Which word correctly completes the sentence?
A. Skills
B. Competences
C. Attributes
BEST OF LUCK!!
