WorksheetsBTF 1
Total questions: 41
Worksheet time: 21mins
In the balanced scorecard, measures of how quickly and fully employee suggestions are implemented would be included in:
financial perspective measures
customer perspective measures
internal business process perspective measures
innovation and learning perspective measures
Marchmount plc is a diversified manufacturing company divided into several divisions. Each division contains an autonomous product business, with its own profit and capital investment responsibilities, delegated by the holding company's board of directors. Marchmount plc's key organisational building block will therefore be the:
strategic apex
technostructure
middle line
operating core
The information systems manager of Detrex plc wants all data input into the company's databases to be complete and accurate. As part of his information management role, he makes use of range checks. The use of range checks should help to deliver
completeness only
accuracy only
both accuracy and completeness
neither accuracy nor completeness
The agency problem underlies the need for sound corporate governance. In this context, the 'agents' are the company's:
customers
shareholders
Directors
auditors
Raj plc operates supermarkets. The company has identified that it will outperform its rivals if it always has inventory of its 100 top-selling products in its shops. Availability of these items is Raj plc's:
key performance indicator
core competence
target
critical success factor
Which of the following services is least likely to be offered by a factoring company to its client?
Provision of finance by advancing 80% of invoice value immediately, and the remainder on settlement of the debt by the client's customer
Taking over responsibility for administration of the client's sales ledger
Deciding what credit limits the client should give customers
Taking over responsibility for irrecoverable debts
Martina is a Human Resources Manager with Wardman Ltd. She is working on a project to increase the spans of control of managers in the company's largest subsidiary. She needs to identify any factors about the subsidiary that indicate increases in spans of control are possible. Which of the following factors identified by Martina suggests that increased spans of control are possible?
Subordinates carry out very similar tasks
Subordinates are geographically dispersed
Frequent, time-consuming problems arise
Managers are engaged in large amounts of non-supervisory work
Professionals judge each other, and hold each other to account, for not meeting professional values, such as bringing the profession into disrepute. Which common attribute of a profession does this describe?
Co-regulation
High degree of autonomy
Formal regulatory process
Self-regulation
The principal factor affecting the nature of business ethics over time is
the expectations of society
the values of senior management
company policies
government regulation
Which of the following sources of finance involves the business requesting a specific sum of money from individuals, usually via the internet?
Alternative investment market
Business angels
Venture capital
Crowdfunding
Good practice in corporate governance requires that openness and transparency should be supported by:
reducing the potential for conflicts of interest
disclosure of information
reconciling the interests of shareholders and directors
judging performance of directors on the basis of return on investment
Manator Ltd has developed a new product for use in the nuclear power industry. Tests on the product have been successful and the product has been given government approval for use in the UK. However, a vocal group of lobbyists claim there is a danger to human health in the long term if the product leaks into the water supply. The company now has an insurance policy to cover all the company's liabilities in the event of a legal claim against the company following a leakage. Manator Ltd is managing the risk through:
risk avoidance
risk reduction
risk transfer
risk acceptance
Rachel has presented some information on how to measure performance to a panel of managers at Jab plc. She found this information on the internet the previous evening as a PowerPoint file and has presented it to the panel unedited. Within five minutes they found it to be highly informative and targeted at the issues they are concerned with. The drawback to the information as presented by Rachel is that it fails to meet the ACCURATE criteria for good information of:
Being cost beneficial
Being relevant
Being easy to use
Being authoritative
Wastby plc has noticed a recent downturn in productivity in one of its key production departments. It has established that a group of production workers are currently demotivated because of the actions of a previous manager who has now been replaced. Stephen, the replacement manager, must find ways to improve the motivation of the group. In terms of the management process, Stephen needs to:
plan
organise
Control
lead
Which section of a company's finance function has primary responsibility for ensuring the sound stewardship by managers of the resources entrusted to them?
The financial transactions recording section
The management accounting section
The financial reporting section
The treasury management section
The manager of Hettie plc's information systems wants all data input into the company's databases to be accurate and complete. As part of her information management role, she makes use of control totals. The use of control totals should help to deliver
accuracy only
completeness only
both accuracy and completeness
neither accuracy nor completeness
J Ltd is a very large company which makes and sells a number of unrelated products. These products are sold in diverse markets around the world. J Ltd does not want a structure that creates dual command within the organisation. Which organisational structure would be most suitable for J?
Matrix
Entrepreneurial
Divisional
Functional
Financial instruments with maturities of less than one year are traded in the
equity market
capital market
money market
fixed-income market
Goldenwood plc is a multinational company that makes sweets and sugary drinks targeted at children between the ages of 4 and 8 years old. The company regularly advertises its products during prime time children’s television programmes and on popular YouTube channels with high numbers of child subscribers. In recent weeks, the company has received adverse publicity because of its targeting of young children which has been branded as ‘unethical’. Which business function is impacted by this ethical issue?
Operations
Procurement
Human Resources
Marketing
Sven, a management accountant, is currently helping to prepare a performance report which uses the balanced scorecard technique. Sven is calculating measures of product quality and product failure rates. The measures calculated by Sven will be included in the final balanced scorecard's:
financial perspective
internal business process perspective measures
innovation and learning perspective measures
customer perspective measures
Which of the following statements concerning management information systems and transaction processing systems is correct?
A management information system is likely to be the foundation of a transaction processing system
Management information systems and transaction processing systems are usually independent
Management information systems and transaction processing systems are synonymous
A transaction processing system is likely to be the foundation of a management information system
Which of the following pairs of factors are likely to enable managers to run a company in their own interests?
Low levels of management accountability and shareholder access to the same information as management
High levels of management accountability and management access to better information than the shareholders
High levels of management accountability and shareholder access to the same information as management
Low levels of management accountability and management access to better information than the shareholders
Simian plc operates in the financial services sector. Its marketing director is developing the firm's marketing plan. An external marketing consultant has recommended that the PESTEL framework should be used as part of this process. Which of the following statements correctly describes the reason why the PESTEL framework might prove useful?
It will identify Simian plc's strengths and weaknesses
It will act as a detailed checklist to assist in understanding the different influences in Simian plc's environment
It will allow a detailed analysis of the structure of the financial services industry
It will help to identify the relative levels of interest and power of Simian plc's stakeholders
Research into products which have obvious commercial or practical use is called
market research
pure research
applied research
process research
A matrix structure aims to combine the advantages of which of the following structures?
Functional and divisional.
Entrepreneurial and functional.
Product/division/department and geographical.
Functional and geographical.
Debesh and Mayghar are two sole traders who want to amalgamate their businesses. Both want to retain day-to-day control of their respective operations, but they do not want to be individually responsible for the full extent of the merged business's borrowings. They want to keep their affairs as private as possible. They should be advised to establish the merged business as:
a general partnership
a public limited company
a limited liability partnership
a private limited company
Any person who brings together providers and users of finance, whether as broker or principal, is known as
a business angel
a venture capitalist
a merchant banker
a financial intermediary
A German company, Albrecht AG, has a dual board structure for its board of directors. This means that, in addition to the supervisory board, the company also operates a:
unitary board
management board
non-executive board
executive board
The organisational structure for Grenestede Ltd is flat compared to many businesses. There are only three levels in its hierarchy, directors, managers and workers. Which of the following is an advantage of this type of organisational structure to Grenestede Ltd?
Greater opportunity to delegate
Narrower spans of control
More participation in decision making
Improved management traning
Amy has just joined the finance function of a local hospital. She identifies that its managers belong to the 'classical school' because of their adherence to the concept of unity of command. This means that in general the managers believe that
a subordinate should receive orders from only one manager there
should be only one manager of each activity
authority should flow down a single chain of command
work should be specialised into single tasks
Market risk is:
the economic loss suffered due to the default of a customer in the market
the risk of choosing the wrong strategy in a particular market
the risk that customers do not buy the company's products in the expected quantities in the market
the exposure to potential loss that would result from changes in market prices or rates
Tram plc's finance function must provide information to management on the company's balanced scorecard. This role is undertaken as part of Tram plc's
statutory audit requirement
financial reporting function
treasury management process
performance measurement system
Big data can be classified into a number of types, including structured and unstructured data. Which of the following is an example of structured big data?
Text messages
Pictures uploaded to social media
Medical records
Internet searches
Seago plc provides exclusive scuba-diving holidays for people over 60 years of age. In terms of Michael Porter's generic competitive strategies, this represents a strategy of:
differentiation
cost focus
Cost leadership
differentiation focus
Arkwright Ltd analyses huge quantities of data about a wide variety of issues from a wide variety of sources. Arkwright Ltd is seeking competitive advantage from
its transaction processing system
big data
cybersecurity
its strategic planning process
Moreton plc produces monthly variance reports for all its production managers. These show the extent and cause of all variances from the company's production plans. The reports enable managers to take corrective action during the following month. In terms of financial information, these reports can be classified as
planning information
operational information
tactical information
strategic information
Manton plc has decided to support the launch of its latest product by means of a major television advertising campaign. This is an example of
pull promotion
push promotion
a combination of pull and push promotion
personal selling
Archway Ltd sells windows in the north-west of England. It has many competitors, from large national firms through to small local businesses across the region. Competitors in the market regularly use price cuts and other sales promotions to win business. In the past Archway Ltd has sometimes matched the price moves of its competitors and at other times it appears to have ignored them. Furthermore, there is no clear pattern to Archway Ltd's response to price cuts. It appears that, in terms of Philip Kotler's competitor reaction profiles, Archway Ltd is a
laid-back competitor
tiger competitor
selective competitor
stochastic competitor
Which of the following is a source of long-term finance?
Trade credit from suppliers
Bank overdraft
Factoring of trade debts
Mortgage on property
Which of the following statements about preference shares as a source of capital for a company is correct?
Preference shares are a form of loan capital which carry lower risk than ordinary shares
Preference shares are a form of equity capital which carry higher risk than ordinary shares
Preference shares are a form of loan capital which carry higher risk than ordinary shares
Preference shares are a form of equity capital which carry lower risk than ordinary shares
Charlize is a manager at Tordos Ltd. She complains to a friend that all she does is attend meetings along with other managers in the company, and represent her team at conferences. In terms of Henry Mintzberg's managerial roles, Charlize is describing her
decisional role
interpersonal role
disseminator role
informational role
