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FBT MOCK EXAM 2

Total questions: 55

Worksheet time: 30mins

Name
Class
Date
1.

Publish Co produces material for a professional examination. In order to meet urgent demand for finished text, it must recruit five copy typists at short notice. The typist must be able to perform the required tasks immediately and the company has to totally confident that they have the ability to do the job.

Which of the following selection method are most appropriate for Publish Co.?

a)

One-to-one interview

b)

Panel Interview

c)

Proficiency test

d)

Psychometric test

2.

In the communication process, which of the following is an example of ‘psychological noise’?

a)

Technical words and phrases used

b)

Timing of the message

c)

Status or position of the sender

d)

Preconception of the receiver

3.

Government in many countries are encouraging improved standards of corporate governance, focusing mainly on public companies whose securities are listed on recognised capital markets.

Why are best practices in corporate governance of special importance to these companies?

a)

Public companies have institutional investors and have greater ethical responsibilities to these investors than to personal investors

b)

All other types of business organisations are already subject to and fully implement high standards of corporate governance

c)

Public companies are subject to a greater degree of separation between those who manage the company and those who own it

d)

Public companies are subject to less stringent regulation than other types of commercial organisation.

4.

Which of the following is an organisational feature of a co-operative business?

a)

Finance from grants or contracts

b)

Distribution of surplus profits in proportion to purchase

c)

Staffing by volunteers as well as full time employees

5.

If a member of the accounts team sends a report directly to the head of human resources, what type of communication is this?

a)

Vertical

b)

Diagonal

c)

Horizontal

6.

Meghan is carrying out a performance appraisal with Katherine, her assistant. Meghan started off the interview by giving Katherine her view of how he has performed during the year. Katherine has then described his views on the job and the responsibilities it entails and has given opinions on how he would like to progress in the future. Meghan has acknowledged Katherine's views and has prompted further input by asking open questions and noting the responses given.

The approach to performance appraisal adopted by Meghan is which of the following?

a)

Tell and sell

b)

360 degree appraisal

c)

Joint problem solving

d)

Tell and listen

7.

Which TWO of the following are DISADVANTAGES of a tall organisation?

a)

Managers only have limited time to supervise each employee

b)

Rigid supervision may block employee initiative

c)

Decision making and responses tend to be slow

8.

Can each of the following be delegated by a manager?

a)

Accountability - YES

b)

Authority - YES

c)

Accountability - NO

d)

Authority - NO

9.

Ethical standards of behaviour within accountancy are mainly promoted by which of the following?

a)

Laws implemented by central government

b)

Rules established by education committees

c)

Code of conduct implemented by professional bodies

d)

Regulations issued by government departments and agencies.

10.

According to Maslow’s hierarchy of needs, which level of use is immediately below self-actualisation?

a)

Social and belonging

b)

Esteem

c)

Security

d)

Safety

11.

The management team at ABC Co is preparing a Corporate Code of Ethics.

The following statements are commitments of ABC Co’s directors and employees. Which TWO of these are legitimate entries for inclusion into the code?

a)

Avoid engaging in any activity where their personal interests interfere, or appear to interfere with those of the company

b)

Ensure that any dealings with customers and suppliers maximise ABC’s profits at all times

c)

Ensure we maintain the same standards as other companies operating in our business sector

d)

Obey the law, and conduct themselves with honestly and integrity

12.

Which of the following principles is usually recommended for inclusion in legislation on data protection?

a)

All personal data held by data users should be updated by checking this data with the subject at regular intervals

b)

The data user should provide the data subject with regular and detailed information on the data held

c)

All personal data held by data users should be reviewed regularly and automatically deleted after a specified period of time.

d)

All personal data held by data users should be adequate for the purposes of the data but not excessive

13.

Analysis of costs and revenues of different products would assist the marketing department in respect of which activity?

a)

Targeting sales efforts towards the most appropriate socio-economic groups

b)

Differentiating the technical features of products from those of competitors

c)

Calculating the maximum discounts that sales personnel are permitted to offer

d)

Determining production bonuses to be paid

14.

Which TWO of the following statements about Porter’s five forces model are true?

a)

A high level competitive rivalry in an industry is always dependent on the number of producers in the market

b)

The bargaining power of customers may be reduced if products can be differentiated effectively

c)

Threat a new entrant is lower when existing suppliers derive purchasing economies of scale

d)

Competitive rivalry in an industry will intensify when there are significant threats from substitutes.

15.

Which of the following is a non-discretionary control?

a)

Staff must be checked against national criminal records

b)

Orders must be signed by a manager before processing

c)

Access to a database is password protected

16.

A ‘horizontal’ extension of the job to increase task variety is called:

a)

Job evaluation

b)

Job enrichment

c)

Job enlargement

d)

Job rotation

17.

In Vroom’s expectancy theory, the lower the values of valence and expectancy, the higher the motivation.

Is this statement true or false?

a)

True

b)

False

18.

It is important to promote proper and complete dialogue between the company registration body and a company. It is also important to ensure that essential administrative requirements laid down by the company registration body come to the attention of the board.

Which TWO of the following positions should be segregated to ensure this?

a)

Company secretary

b)

Chairman

c)

Chief executive officer

d)

Director

19.

Objectives set by individuals as part of their personal development plans should conform to the ‘SMART’ or ‘SMARTER’ criteria.

What do the first two letters of ‘SMART’ or ‘SMARTER’ represent?

1. Standardised

2. Specific

3. Motivational

4. Measureable

a)

2 and 4

b)

2 and 3

c)

1 and 3

d)

1 and 4

20.

Which of the following tests measures an individual’s current ability to perform a specific tasks or operation?

a)

Proficiency test

b)

Aptitude test

c)

Intelligence test

21.

Which TWO of the following are connected stakeholders to an organisation?

a)

Employees

b)

Suppliers

c)

Managers

d)

Customers

22.

Which of the following is an example of standing data recorded in a payroll system?

a)

Total salary received in the year to date

b)

Total deductions from gross income each month

c)

Pension contributions deducted from salary

d)

Tax reference number issued by the tax authority

23.

A threat to ---------------may arise if a professional accountant in public practice performs services for clients whose interests are in conflict.

Which word correctly completes this sentence?

a)

Integrity

b)

Objectivity

c)

Confidentiality

24.

‘Block chain eliminates the need for data and information to be stored and managed centrally?

Is the above statement True or False?

a)

True

b)

False

25.

Which of the following describes a proactive strategy for corporate social responsibility?

a)

Recalling faulty products before customers become aware of the faults

b)

Looking to minimise additional obligations arising from faults reported by customers

c)

Dealing with situations after the public become aware of them.

26.

BETH Co has just had to recruit some additional staff to clear a backlog of orders in its warehouse and the Operations director is concerned about the impact this will have on BETH Co’s staff costs compared to the budgeted figure.

Which TWO of the following reports would it be most useful for the Operation director to look at?

a)

BETH Co's wages and salaries cost schedules

b)

The cost schedules for BETH Co’s administration costs as a whole.

c)

Variance reports for wages and salaries

d)

Variance reports for BETH Co’s administration costs as a whole

27.

Kolb’s learning cycle comprises active experimentation, experience, observation and reflection and which other element?

a)

Positive reinforcement

b)

Application

c)

Assimilation

d)

Abstract conceptualisation

28.

Hiroto recognises that as a Chief Executive Officer a large part of his time is spent as the company figurehead at dinners, conferences etc.

Which Mintzberg’s managerial role is being described by Hiroto?

a)

Decisional

b)

Informational

c)

Interpersonal

29.

Which type of goods has a cross-elasticity of demand of -1?

a)

Homogenous goods

b)

Perfect complements

c)

Perfect substitutes

d)

Unrelated goods

30.

An organisation is aiming to keep a stakeholder satisfied.

According to Mendelow’s grid, what level of the interest and power does this stakeholder have?

a)

Interest : Low level

b)

Interest : High level

c)

Power : Low level

d)

Power : High level

31.

In relation to fraud preventions, which of the following statements is correct in respect of the role of the external auditor?

a)

The external auditor must ensure that all internal systems are capable of detecting every type of fraud

b)

The external auditor has primary responsibility for preventing and detecting fraud and is accountable to the shareholders for this.

c)

The external auditor's procedures should provide reasonable assurance that misstatements arising from fraud will be detected.

d)

The work of the external auditor has nothing to do with fraud prevention, so the external auditor has no responsibility in this respect.

32.

Which of the following is a characteristic of an informal group?

a)

Complementary skills

b)

Common purpose

c)

Focused on organisational objectives

d)

Affinity or common interest

33.

As a direct result of an employee’s ineffectiveness at work, potential problems were not identified and consequently no counter measures could be taken in time to prevent the problem arising.

Which of the following most accurately reflects the nature of the employee’s ineffectiveness?

a)

Failure to produce the quantity required

b)

Failure to meet deadlines

c)

Failure to communicate the potential problems

d)

Failure to meet quality requirements

34.

Which of the following statements concerning external audit is CORRECT?

a)

External auditors report to shareholders on the stewardship of directors

b)

External auditors are often employees of the company

c)

External audit is designed to add value and improve an organisation’s activities

35.

David is an accountant. He has not yet read details received yesterday of recent changes to tax legislation, and is about to visit a client to give some tax advice.

Which fundamental principle appears to be compromised in this matter?

a)

Objectivity

b)

Integrity

c)

Professional competence

36.

In the context of fraud detection and prevention who may conduct a thorough review of systems and controls during a surprise visit?

a)

External audit staff

b)

Senior management

c)

Internal audit staff

37.

The evaluation and testing of internal controls within an organisation is referred to as which of the following?

a)

Systems audit

b)

Transaction audit

c)

Management audit

d)

Operational audit

38.

Lily attended a job interview where she was asked if she planned to have children in the next five years.

What type of discrimination is being shown here?

a)

Indirect discrimination

b)

Direct discrimination

c)

Victimisation

39.

Alex, Betty, Charles, Denise and Edwin are colleagues in the same team. Their team leader has sent an email to each of them attaching an agenda for a forthcoming meeting which the whole team is required to attend in order to review monthly performance.

This is an example of which type of communication pattern?

a)

Wheel

b)

Y

c)

Chain

d)

Circle

40.

Which of the following can be considered as a distinguishing mark of the accountancy profession?

a)

The accountant’s responsibility to satisfy the needs of their individual clients

b)

Its acceptance of its responsibility to act in the public interest

c)

Its acceptance of its responsibility to uphold the law

d)

The accountant’s responsibility to satisfy the needs of their individual employers.

41.

Which of the following writers argued that the manager of a business has one basic function, namely economic performance?

a)

Drucker

b)

Mayo

c)

Mintzberg

42.

Which of the following would be an internal source of big data for a retail organisation?

a)

Published government data

b)

Sales growth data from an industry body

c)

Customer social media interactions

d)

Processed customer sales data

43.

According to Handy, which cultural stereotype is shaped by the interests and talents of individuals?

a)

Role culture

b)

Task culture

c)

Existence culture

44.

Which of the following brings together individuals with different competencies and specialisms?

a)

Multi-disciplinary teams

b)

Virtual teams

c)

Functional teams

45.

Which of the following terms best describes the measurable outcomes to be achieved within a definite time limit as part of a personal development plan?

a)

Goals

b)

Results

c)

Objectives

d)

Aims

46.

The meaning of a message can be lost at the coding and decoding stages.

What is the name given to this process?

a)

Feedback

b)

Noise

c)

Distortion

47.

Managers are classified by McGregor into two main opposing styles based on their attitude and perceptions of the abilities and motivation of their employees.

In relation to McGregor’s theory of motivation, indicate whether the following statements are consistent with Theory X and Theory Y views.

a)

Work provides valuable social function and enables individuals to grow psychologically : THEORY X

b)

Work provides valuable social function and enables individuals to grow psychologically : THEORY Y

c)

Workers must be forced or bribed in order to deliver the desired level of output. : THEORY X

d)

Workers must be forced or bribed in order to deliver the desired level of output. : THEORY Y

48.

According to Herzberg, which ONE of the following are powerful methods of achieving lasting, long-term motivation?

a)

Fringe benefits

b)

Quality of supervision

c)

Company policy

d)

Clean and safe working conditions

e)

Recognition

49.

Charles is a training manager for his organisation. He has been instructed by his manager to prepare detailed information for consideration by the executive committee setting out how the training needs of the organisation will be met for the forthcoming financial year. The executive committee requires a detailed description of the needs that will be addressed, the methods of training to be used, the extent to which internal and external trainers will be deployed and how the learning will be validated. For the time being, no budgetary information is required.


Indicate the level of Anthony’s hierarchy that corresponds to the information.

a)

Strategic

b)

Tactical

c)

Operational

50.

Erin is the manager of sales personnel in a Call Center. She has to prepare quantitative information for her team leaders showing the number of calls made by each member of staff, the number of calls that resulted in successful sales, the number of hours worked by each member of staff, and their attendance and absence rates.


Indicate the level of Anthony’s hierarchy that corresponds to the information

a)

Strategic

b)

Tactical

c)

Operational

51.

Frida is the head of human resources in her company. She has to prepare a workforce plan setting out the projected supply and demand for staff at all levels over the next year period, taking into account of retirements, estimated resignations, new posts to be created, positions that will no longer be required and a commentary on areas in which there may be skills shortages, and her recommended strategy for addressing these shortages.

Indicate the level of Anthony’s hierarchy that corresponds to the information

a)

Strategic

b)

Tactical

c)

Operational

52.

XYZ Co manufactures plastic boxes. It employs 120 people and is managed in the following way. Operational staff are employed because of their specialised skills and for the application of these skills they are answerable to a specialist training manager. They are allocated to particular manufacturing teams working on different types of boxes. Each type of box has a different manager who manages its production. In the course of a working week an individual employee can work on the manufacture of more than one type of box.

Which type of the following organisational structures is described for XYZ in the statement above?

a)

Matrix

b)

Geographical

c)

Divisional

d)

Functional

53.

Here are two short definitions of key types of communication:


A. Communication between people at the same level within the organisation

B. This refers to communication between different levels and departments


Match EACH of the descriptions above with the following types of communication ( A or B)

a)

Diagonal communication : A

Lateral communication : B

b)

Diagonal communication : B

Lateral communication : A

54.

PUG sells clothes and other accessories for pet cats. It primarily sells through a small shop in an affluent area of the capital city of country P. It has been struggling to make a profit in recent years and its owner, U, is concerned about its long-term survival. PUG has a small but dedicated workforce, which is experienced in pet retail.

U is considering a number of possible approaches to managing his staff in this period of decline:

A. He could ask the staff for ideas about how to turn the business around, though U would still have the final say on which, if any, of these ideas were used.

B. He could decide on a plan to improve the profitability of the business and simply inform his staff of how this will be implemented.

C. He could decide on a plan to improve profitability and explain the reasons and benefits of his proposals to his staff members.

D. He could come to a mutual decision with his staff about the best way forward for the company.


Match EACH of the approaches above with ONE of the management styles below.

a)

Joins : D, Consults : A, Tells : B, Sells : C

b)

Joins : A, Consults : B, Tells : C, Sells : D

c)

Joins : B, Consults : A, Tells : D, Sells : C

d)

Joins : C, Consults : A, Tells : B, Sells :D

55.

A. The activities which aim at developing the knowledge skills, moral values and understanding required in all aspects of life rather than a knowledge skill to only a limited field of activity

B. The planned and systematic modification of behaviour through learning events, programmes and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out their work effectively.

C. The growth or realisation of a person’s ability and potential through conscious or unconscious learning and educational experiences.

D. The willingness of individuals to perform against certain tasks or actions.

Match the description above, which is associated with each of the following terms, with A, B, C, D or none.

a)

Education : A, Training : B, Development : C, Motivation : D

b)

Education : B, Training : A, Development : C, Motivation : D

c)

Education : A, Training : D, Development : B, Motivation : B

d)

Education : C, Training : B, Development : D, Motivation : A