Organisational Structures and Controls

A business that has a short scalar chain will have:

• Few levels of management

• A low number of production processes

• A short distance between its head office and production sites

• A number of small retail outlets.

Fill in the blank: A 'flat' organisation has few levels of management and a ______ span of control.

• wide

• narrow

• limited

• restricted

Explain the difference between authority and responsibility in an organisation.

• Authority is the power to make decisions, while responsibility is the duty to carry out tasks.

• Authority and responsibility are the same in an organisation.

• Responsibility is the power to make decisions, while authority is the duty to carry out tasks.

• Authority and responsibility have no relation in an organisation.

List the four components of the accounting/finance function.

• Budgeting, Auditing, Reporting, Taxation

• Planning, Organizing, Leading, Controlling

• Investing, Financing, Operating, Reporting

• Accounting, Finance, Marketing, Management

Fill in the blank: Internal audit examines and evaluates the organisation’s risk management processes and systems of ______.

• control

• finance

• marketing

• operations

The role of management accounting within an organisation is to:

• provide financial information for decision making

• manage employee relations

• oversee marketing strategies

• handle customer service

Written instructions in an office manual should indicate:

• the purpose of the task.

• the steps to complete the task.

• the tools required for the task.

• the deadline for the task.

The financial statements of limited companies must usually be prepared in accordance with which legal framework?

• Companies House

• International Financial Reporting Standards (IFRS)

• Generally Accepted Accounting Principles (GAAP)

• Corporate Governance Code

List the fundamental qualitative characteristics of financial statements as per the Board’s Conceptual Framework.

• Relevance and Faithful Representation

• Comparability and Verifiability

• Timeliness and Understandability

• All of the above

Which of the following is a characteristic of a tall organizational structure?

• Flat hierarchy

• Decentralized decision-making

• Wide span of control

• Many levels of management