ACCA F1 - 28.

11 (70 marks)
1. Which TWO of the following would you believe if you agree with McGregor’s Theory X?

1. Work is as natural to people as rest

2. People must be directed work to the required standard

3. People fell that achievement at work is irrelevant

4. Money is only one benefit from work

2.According to Kotter, leadership is primarily about which of the following?

5. Change

6. Complexity

7. Choice

8. Challenge

3. Which TWO of the following would you consider when undertaking a PESTEL analysis? o

9. Legal issues

10. System requirements

11. Personal preferences

12. Technological factors

4. Senior Manager is considering making changes to the working day. They consult some of their staff
before taking a decision. The staffs who are consulted talk to their colleagues. This results in a strike
being threatened because the working day is to be extended

This is an example of which type of communication channel?

13. Format

14. Vertical

15. Horizontal

16. Grapevine

5. Which of the following is described by the scalar chain concept?

17. Non-routine decisions are taken at the top level of management.

 18. Decisions are pushed down to the lowest possible level in an organization.

19. The number of levels in the organization structure.

20. No-one in on organization reports to more than one supervisor

6. Aintab is employed as an accountant in XYZ Co. He has been asked to form an inter-disciplinary team
to design a new financial system. In determining the composition of the team he should consider which
of the following issues?

(1)Technical skills

(2 ) Inter-personal skills

(3) Team role mix

21. 1, 2 and 3

22. 2 and 3 only

23. 1 and 3 only

24. 1 only

7.Bob purchase 20% of Company A’s output. Company A is only one of many companies who supply Bob.
Bob always maintains a degree of completion between suppliers

As for as Company A is concerned, how should Bob be categorized under Mendelow’s framework?

25. Low power, low interest

26. Low power, high interest

27. High power, high interest

28. High, power, low interest

8. Team members via for position and complete as they attempt to establish themselves in relation to
other team members and the leader, who might be challenged by certain individuals. Clarity of purpose
increases.

Which stage in the ‘Tuckman team-development model’ is described by this statement?

29. Forming

30. Norming

31. Performing
 32. Storming

9. For which of the following is horizontal communication used?

33. To direct subordinates

34. Feedback to management from employees

35. Task coordination between departments

36. To clarify operational goals.

10. Which TWO of the following statements about the benefits of an equal opportunities policy are
correct?

37. The organization can be benefited from a wide source of talent.

38. The workforce is increased and productivity is improved

39. It motivates the workforces to seek development and promotion.

40. It reduces the need to interview candidates for employment.

11. Which TWO of the following are features of tall organization?

41. Decentralization of authority.

42. Few levels of management.

43. Narrow span of control

44. Tight supervision

12.Which of the following are ways in which an organization could recognize ethical issues?

(1) Appoint ethical champions

(2) Embrace ethics in its value statements

(3) Include ethical dimensions in human resources management (

4) Include ethical values in its mission statement

45. 1 and 3 only

46. 1,2, 3 and 4

47. 1, 2 and 4 only.

48. 2 and 4 only

13. Appraisal systems are often misunderstood and mismanaged.

Are the following statements about managing the appraisal process true or false?

Only poor performance should be discussed

49. True

50. False

14. Ahsan is a director of HH Co. and has been asked to oversee the development of a new business
system. The objective of the system will be providing reasonable assurance about the reliability of
financial reporting.

What type of system is being developed?

51. An information system

52. An internal audit system

53. An internal control system

54. A financial accounting systems

15.ABC Co. operates in an industry characterized by a high proportion of fixed cost but minimal
investment machinery. There is Brand loyalty, with customers able to switch from one supplier to
another at no cost. In recently years the market has started to decline.

Which of the following will result in a greater threat of new entrants to the Industry?

55. The lack of brand loyalty

56. The declining market

57. The high fixed costs

58. The minimal need for investment in machinery.

16. The impact on introducing technology with Company XX is that it can now operate with a smaller
work force than before. Technology has replaced some of the manual jobs.

What is the name of this strategy?

59. Downsizing

60. Delayering

61. Franchising
 62. Outsourcing

17. Which of following are ADVANTAGES of a business organization?

(1) To enable functional specialization

(2) To increase control by the owner

(3) To allow knowledge sharing

(4) To facilitate expansion

63. 1 and 3 only

64. 1, 3 and 4 only

65. 2 and 4 only

66. 1,2,3 and 4

18. Which TWO of the following are prerequisites for fraud in circumstances where duties are not
segregated?

67. Collaboration

68. Collusion

69. Dishonesty

70. Motivation

19.A government wishes to increase employment via the immediate growth of private sector business.

What is the MOST appropriate policy?

71. Increase interest rates

72. Reduce public sector borrowing

73. Reduce public sector spending

74. Reduce income tax

20. Which of the following describes the ‘country club’ style of management identified by Blake and
Mouton’s managerial grid?

75. Follows the traditions of scientific management

76. A high degree of concern for production and for people

 77. Little concern for people and little concern for the task.

78. Encourages and supports and overlooks inadequacies

21. David, an internal auditor, has been asked to assess the internal factors that may increase his
company’s risk exposure to fraud.

Which TWO of the following are relevant to this assessment?

79. Corporate restructuring

80. New legislation

81. Rapid growth

82. Increased competition

22.David, an internal auditor, has been asked to assess the internal factors that may increase his
company’s risk exposure to fraud.

Which TWO of the following are relevant to this assessment?

83. Corporate restructuring

84. New legislation

85. Rapid growth

86. Increased competition

23. Which TWO of the following are characteristics of a shaper within Belbin’s team roles?

87. Well organized and predictable

88. More interested in ideas than achievement

89. Challenges other to move forward

90. Can be insensitive aggressive and cause conflict.

24. Ben is responsible for conducting internal checks Preparing which TWO of the following for part of
his role?

91. Supervision schedules

92. Authorization notes

93. A pre-list

94. Control totals

25.In which part of a PEST analysis will ‘new patents and products’ and ‘changes in lifestyle’ be listed?

95. Economic and social

96. Social and technological

97. Technological and political

98. Political and economic

26.Country XYZ is a country operating a balance of payments surplus on goods and services with other
countries. The demand for XYZ products and services in other countries is very price elastic, while
demand in ZYX for products and services from other countries is price inelastic If the value of the XYZ
currently falls against those of its International trading partners, what will be the effect on ZYX’s
International trade situation?

99. The value of both exports and imports will fall

100. The value of both exports and imports will rise

101. The value of imports will fall and the value of exports will rise

102. The value of imports will rise and the value of exports will fall

27. The following definitions of internal and external audit true or false?

Internal audit is a function which reports to the management of a company on the financial and
operating systems

103. True

104. False

28.A Co and B Co are competitors in the oil industry who, between them, have a 90% market share. The
chief executives of the two companies meet at a conference and have a private meeting at which they
make several agreements Which of the following agreements would represent unethical business
practice?

105. An agreement to set prices at a particular level

106. An agreement to transport oil across a shared pipeline

107. An agreement to develop joint technology for future use

108. An agreement to commence research into environmental issues

29.Which TWO of the following describe the MOST usual impact of the informal organization on the
business and the people working within it?
 109. Informal networks discourage horizontal communication

110. Informal leaders may undermine managerial authority

111. Informal communication networks tend to be slower than formal channels

112. Informal information can be inaccurate and negative, causing stress

30.Richards is an accounts payable clerk. He has received an invoice from a supplier for $ 30,000. What
does the transaction require for input into the computer?

113. Bank statement

114. Credit note

115. Supplier code

116. Payment

31.Which TWO of the following would be included in a Corporate Social Responsibility Report?

117. Shareholder’s equity

118. Protecting the environment

119. Sustainable development

120. External auditors’ assurances

32. Which TWO of the following are performed by the procurement department in a business?

121. Producing purchase orders

122. Authorizing customers’ credit limits

123. Producing sales orders

124. Obtaining price quotations

33. Jim works for the internal audit department of KL Co. Recently he was asked to examine the polices
of the purchasing department, and to report to management whether the polices were adequate and
were working effectively. What type of audit has Jim been asked to perform?

125. Operational audit

126. Transactions audit

127. Value for money audit

128. Systems audit

34. Which TWO of the following are examples of content theories of motivation?

129. Maslow’s hierarchy of needs

130. Herzberg’s two factor theory

131. Adam’s equity theory

132. Vroom’s expectancy theory

35. Which TWO of the following BEST describes the concept of acting in the public interest?

133. Recognizing that there are a variety of groups affected by organizational action.

134. Ensuring that government is adequately informed about the impact of organizational
activity.

135. Ensuring that behaviour is beneficial to most if not all stakeholders

136. Ensuring that all organizational activity receives due public attention and scrutiny.