BUSINESS AND TECHNOLOGY PAPER F1 MOCK EXAM (8)

QUESTION 1

Seema is a management consultant employed by a health organisation. She finds that the finance
and medical directorates are in regular conflict. The finance directorate accuses the medical
directorate of spending beyond its budgeted allocation. The medical directorate accuses the
finance directorate of being concerned solely with spending cuts.

Which of the following courses of action should Seema recommend the organisation take to
improve morale in the longer term?

(1) Develop a code of organisational values

(2) Improve inter-disciplinary communication

(3) Develop a corporate mission statement

A) 2 and 3 only
B) 1 and 3 only
C) 1.2 and 3
D) 1 and 2 only
QUESTION 2

What is the MAIN purpose of an organisational code of ethics?

A) To specify the rules of etiquette in dealing with customers and suppliers

B) To identify charitable activities and causes supported by the organisation
C) To guide moral behaviour in situations employees are likely to encounter in work
D) To specify policies which apply to an organisation's operations
QUESTION 3

Which of the following statements is CORRECT in relation to team effectiveness?

A) The existence of conflict does not always reduce team effectiveness

B) For teams to be effect ve it is necessary to have regular, face-to-face meetings
C) A pre-requisite of an effective team is for the leader to be consultative at all times
D) Absenteeism is a cause and not an effect of ineffective teams
QUESTION 4

Which of the following classifications of motivational theory reflects the work of Herzberg?
 A) Content B) Process

QUESTION 5

Which stage of Kolb's learning cycle is described as the 'beginning of internalisation'?

A) Concrete experiences
B) Observation and reflection128.129
C) Abstract conceptualization
D) Active experimentation
QUESTION 6

A Coard 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?

A) An agreement to transport oil across a shared pipeline

B) An agreement to commence research into environmental issues
C) An agreement to develop joint technology for future use
D) An agreement to set prices at a particular level
QUESTION 7

Which of the following statements reflects the stakeholder approach to decision-making?130

A) Various people have a legitimate interest in the business

B) All stakeholders have a financial interest in the business
C) Competitors are classed as stakeholders
D) Owners are the most important stakeholder
QUESTION 8

Which TWO of the following steps describe how a personal development plan should be
monitored?

A) Producing a clear statement of scheduled achievements

B) Holding appraisals of progress in meeting goals
C) Recording the number of errors made in routine work
D) Counting the courses attended by the employee
QUESTION 9

Which TWO of the following controls used by a business are forms of output control?

A) Variance exception reports

B) Control totals
C) Range checks
D) Quality failure rates
QUESTION 10

The production manager of Xed Company, who reports to the operations director, has emailed
the human resources manager, who reports to the administration director, for assistance with a
matter concerning one of their team's contract of employment

This is an example of which type of communication?

A) Horizontal
B) Vertical
C) Diagonal
QUESTION 11

Do the following involve disguising the source of illegally obtained funds?

Money laundering

Teeming and lading

QUESTION 12

A new computer system has been purchased to deal with order processing. Since it can process
orders much more quickly than the old system, the organisation has been able to make 75% of its
order processing staff redundant.

Which of the following describes this type of reduction in staff?

A) Downsizing
B) Outsourcing
C) Subcontracting
D) Delayering
QUESTION 13

The theory of the firm analyses profit maximising business by exploring the behaviour of revenues
and costs. Average revenue and average cost are denoted as AR and AC respectively. Marginal
revenue and marginal cost are denoted as MR and MC respectively.

At which point will a producer maximise profit?

A) MR = AC
B) MR = MC
C) AR = AC
QUESTION 14

Bob purchases 20% of Company A's output Company A is only one of many companies who supply
Bob. Bob always maintains a degree of competition between suppliers.

As far as Company Als concerned, how should Bob be categorised under Mendelow's
framework?

A) High power, low interest

B) Low power, low interest
C) High power, high interest
D) Low power, high interest
QUESTION 15

Analysis of which of the following assesses whether someone is an extrovert or an introvert?

A) Perception C) Attitudes
B) Personality types D) Cognitive ability
QUESTION 16

Tisha has applied for a job and as part of the selection process she must complete a written test.
The test is designed to predict her potential for learning new skills looking at reasoning and
perceptual speed.

What type of test has Tisha been asked to complete?

A) Personality
B) Proficiency
C) Intelligence
D) Aptitude
QUESTION 17

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

A) Producing sales orders

B) Producing purchase orders
C) Obtaining price quotations
D) Authorising customers' credit limits
QUESTION 18

The ACCA code of ethics applies to the individual behaviour of accountants

Which of the following is a purpose of the ACCA code of ethics?

A) To ensure that accountants adhere strictly to the letter of the law

B) To require accountants to identify, evaluate and address threats to ethical behaviour
C) To provide detailed guidance on how to respond to any ethical conflict
D) To remove subjectivity in the solving of ethical dilemmas
QUESTION 19

Which of the following is NOT generally considered to be an advantage of decision making by

committee compared with decision making by one person?

A) Quicker decisions are made

B) Communication is improved
C) A wide pool of knowledge is accessed
D) More comp ex decisions are considered
QUESTION 20

Managers at PQR Co make decisions based on what is good for the organisation and its
environment. They have confidence that employees can work effectively without being checked
on a regular basis.

Which of the following organisational values is described above?

A) Trust
B) Empowerment
C) Openness
D) Respect
QUESTION 21

Which of the following bodies is responsible for the issue of international ethical guidance for
the accountancy profession?

A) International Federation of Accountants (IFAC)

B) Standards Advisory Council (SAC)
C) International Accounting Standards Committee Foundation (IASCF)
QUESTION 22

According to Schein, an organisation's culture can be analysed over three levels. The third level
contains the assumptions on which the culture is built and is invisible. The first and second levels
contain aspects of culture which are visible

Match the level with the aspects of an organisation's culture to which they relate.

First Level Second Level

Values and beliefs

Behaviour

QUESTION 23

The term hierarchy refers to the distribution of authority, responsibility and accountability.

Which of the following is an essential feature of a hierarchy?

A) Authority passes downwards

B) Authority passes laterally
C) Authority passes upwards
QUESTION 24

Medilyx Co sales staff carry confidential personal data on laptops. The company wishes to review
compliance with the following data protection principle. 'Appropriate technical and organisational
measures shall be taken against unauthorised disclosure of personal data

Which TWO of the following data security measures are relevant to Medilyx Co's compliance
review?

A) Training of the laptop users

B) Segregation of duties
C) Off-site, back-up copies of data files
D) Encryption of the laptop data
QUESTION 25

Aqua Food Fishing Co operates a fleet of ships in the western oceans.

Which of the following are ADVANTAGES of sustainable fishing to shareholders in Aqua Food
Fishing Co?

(1) It will provide long-term benefits for future investors

(2) It provides good public relations for Aqua Food Fishing Co

(3) It increases profits in the short-term

(4) It increases business efficiency within the fleet

A) 2 and 3
B) 1 and 2
C) 1 and 4
D) 3 and 4
QUESTION 26

What is the term for the difference between required skills and available skills?

A) Training needs assessment B) Training gap

QUESTION 27

Are each of the following statements regarding conflict true or false?

True False

Conflict is constructive when it polarises views

Conflict can help encourage creativity

QUESTION 28

With which TWO of the following is cash and working capital management concerned?

A) Managing quantities of inventories and work-in-progress

B) Controlling the level of receivables
C) Verifying the existence and condition of non-current assets
D) Monitoring the level of long term liabilities
QUESTION 29

What does the term EIS stand for?

A) Electronic Information System

B) Executive Information System
C) Executive Intelligence System
QUESTION 30

Which TWO of the following are ADVANTAGES of off-the-shelf software packages?

A) Shorter lead time from purchase to installation

B) Precisely fits the needs of the organisation
C) Cheaper to buy than bespoke packages
QUESTION 31

Which of the following communication patterns is described as the MOST centralised network?

A) Circle B) Chain C) Wheel

QUESTION 32

A systems audit involves tests to check that the figures entered in the financial statements and
supporting documentation are correct.

What sort of tests will be used for this purpose?

A) Substantive tests B)Compliance tests

QUESTION 33

How should auditors initially report money laundering to the authorities?

A) In the management letter

B) In the financial report
C) In the audit report
D) In a suspicious transaction report
QUESTION 34

Which of the following items could appear in a company's statement of financial position?

A) Current liabilities C) Finance costs

B) Income tax paid D) Overheads
QUESTION 35

Which of the following is an example of how businesses and organisations are affected by
monetary policies?

A) Corporation tax affects the level of investment that can be made by organisations
B) High interest rates increase the cost of investment and depress consumer demand for credit
C) Government spending and investment determine the levels of service that can be provided by
the public sector
D) Personal taxation levels affect consumer demand for goods and services
QUESTION 36

ABC Co is one of four major competitors in a market. Each firm tries to differentiate its products
from those of the others. Branding is important, and strategic planning by each firm includes
consideration of the likely response of competitors

In what type of market does ABC Co operate?

A) Monopolistic
B) Monopoly
C) Oligopoly
D) Perfect
QUESTION 37

Which of the following statements is consistent with the leadership theory of Warren Bennis?

A) Leaders may be psychologically distant or psychologically close and each of these attributes
may be appropriate in different situations
B) While it is important for leaders to be accepted, no individual will be an ideal leader in every
circumstance and individuals at all levels can exert influence
C) The common competencies of effective leaders are the management of attention, meaning,
trust and self
D) Leaders must balance achievement of the task with development of individuals and
maintenance of the team
QUESTION 38

Are the following barriers to effective appraisal? Yes No

The appraisal is treated as a one-sided process

The feedback is subjective

QUESTION 39

Which writer is MOST closely associated with differing national perspectives on culture?

A) Handy

B) Hofstede

C) Schein

QUESTION 40

As John starts the audit of ABC Company, he tells a colleague that he is very short of money
Overhearing this, the finance director of ABC Company offers him a short term loan, on very
favourable terms.

Which of the principles from the IESBA (IFAC) Code of Ethics is threatened here?

A) Trust
B) Professional behaviour
C) Objectivity
QUESTION 41

An organisation expects to undertake numerous different projects. Project groups will be set up
drawn from the various departments, and then disbanded once the project is complete

What type of organisational structure is this?

A) Departmental
B) Matrix
C) Functional
QUESTION 42

Which of the following can be improved by applications of artificial inteligence and machine
learning?

A) Job enrichment for operational roles

B) Structured decision making
C) The quality of the raw data available for capture
D) More accurate forecasting
QUESTION 43

JKL Company, a retailer, has introduced a policy through which all its divisions must employ PPP
Company, a specialist human resources company, to recruit and select executives.

MNO Company offers medical services through autonomous divisions in four regions and has set
up a unit through which all divisions will meet their data processing requirements.

POR Company manufactures cosmetics and has set up a training division which will provide
services across all of its departments, paid for through a transfer pricing system

Which of the following utilise(s) the shared services organisation approach?

A) MNO Company only

B) POR Company only
C) MNO Company and POR Company
D) JKL Company and MNO Company
QUESTION 44

Are the following terms stages of Tuckman's model of team development?

Yes No

Consolidating

Experimenting

QUESTION 45

Which of the following levels of management is the primary user of operational information?

A) Team leader
B) Senior
C) Middle
QUESTION 46

Which of the following is an ADVANTAGE of decentralisation?

A) Greater speed of decision-making, and response to changing events
B) Better economy due to lower costs of overheads
C) Policies, procedures and documentation can be standardized

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