WorksheetsBTF chapt 12346
Total questions: 120
Worksheet time: 1hrs 4mins
Option 1
Option 2
Option 3
Option 4
At the Annual General Meeting (AGM) of Vortex plc, a major shareholder claimed that the company was suffering from the symptoms of ‘satisficing’. In the context of corporate objectives, ‘satisficing’ means that:
managers seek to make satisfactory profits rather than maximise wealth
managers seek to keep all stakeholders satisfied
owners seek to meet a satisfactory level of corporate responsibility obligations
owners seek to make satisfactory profits
Joe, the Managing Director of Gargoyle Ltd, has set a primary objective of growth in profits for the company. He aims to concentrate on product development to support this objective. Identify whether the following will be suitable secondary objectives to achieve the growth in profits via product development.
1. Bringing in new products
2. Reducing labour turnover
3. Investing in research and development
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Maximising the wealth of its shareholders is the stated goal of Avernanche plc. The company’s objectives have been expressed as a hierarchy of primary and secondary objectives. Identify which of the following is most likely to be Avernanche plc’s primary business objective.
To increase the annual profit after tax by 125% in the next 10 years
To introduce an average of two new products each year for the next six years
To double the share price within the next 10 years
To become the market leader in four market segments within the next 10 years
A major shareholder has stated that for three years the directors of Barrington plc have run the company in a manner designed solely to increase their prestige in the business community. According to William Baumol, this is most likely to be shown in the directors’ aim to:
maximise wealth
maximise sales revenue
minimise costs
minimise social impact
To establish whether a particular organisation should be classified as a business or not, it is necessary to enquire about the nature of its:
primary objective
mission
vision
secondary objective
The primary objective of ABC Car Rental Ltd is as follows: “We aim to be the fastest growing company with the highest profit margin in the global vehicle rental and leasing business.”
One of its secondary objectives is: “To increase our market share for global family car rentals to 20% within a reasonable time.”
Requirement: Which three components of the SMART acronym are present in the company’s secondary objective?
S
M
A
R
T
For a business, which two of the following would be classified as secondary objectives?
The business’s market share target for next year
The business’s productivity improvement target for next year
The business’s mission statementThe business’s financial objective of shareholder wealth maximisation
The business’s mission statement
The business’s vision
A major airline, FlotAir plc, has been drawing up a mission statement.
Requirement: Which three of the following items could be expected in it?
We will double profits in three years
We will encourage diversity in the workplace
We intend to be the best airline in the world
We aim to give excellent customer service
We intend to have a 30% market share on the London to New York route
Two of Sunshine Tours plc’s stakeholder groups are putting the company under pressure to improve its return on investment.
Requirement :These are most likely to comprise which two of the following groups?
Shareholders
Customers
Bankers
Suppliers
Employees
Mandrake plc processes waste for local authorities. It has stated that it seeks to provide “our shareholders with increased value, our customers with value for money, our employees with secure and interesting jobs and the public with safe and sustainable waste disposal.” Requirement: This is analysed below into four statements. Identify which is Mandrake plc’s primary business objective.
To provide our shareholders with increased value
To provide our customers with value for money
To provide our employees with secure and interesting jobs
To provide the public with safe and environmentally sustainable waste disposal
Daycare is a charity that funds nursery places for children whose parents are both unemployed. On its website, the organisation states that it continually needs to raise funds that can be reinvested to produce an on-going income to fund its activities. It also seeks to provide daycare for all families who need its support and that it will never turn a family in need away.
A business adviser has made two statements:
Statement (1): The primary objective of Daycare is to maximise profit.
Statement (2): The secondary objective of Daycare is the funding of nursery places.
Requirement Identify whether each statement is accurate.
Statement (1) accurate; Statement (2) inaccurate
Statement (1) inaccurate; Statement (2) inaccurate
Statement (1) accurate; Statement (2) accurate
Statement (1) inaccurate; Statement (2) accurate
At its recent AGM, the shareholders of Boron plc voted by a small majority to accept a small dividend. At the meeting many shareholders said that they accepted the dividend because the company’s profits were low, but were very unhappy with the return because the company’s financial statements showed a large increase in revenue.
Requirement Which of the following describes what is most likely to be happening at Boron plc?
Revenue maximising
Profit satisficing
Profit maximising
Revenue satisficing
Which of the following statements relating to Environmental, Social and Governance (ESG) objectives is true:
If businesses are only interested in maximising the wealth of shareholders, they should ignore ESG objectives
Businesses should only adopt ESG objectives if the costs are less than the fines of poor ESG behaviour
behaviour Even where shareholders are only interested in maximising their wealth, the value of a business over the longer term is enhanced by good ESG practices
ESG is likely to reduce the wealth of shareholders due to higher costs, but the owners have a moral obligation to embrace good ESG performance
To what does the term ‘triple bottom line’ refer?
Operating profit, Profit before tax, Profit after tax
Profits, Planet, People
Profit after tax, Net cash flows for the year, Changes in equity
Corporate profits, Business Unit profits, Departmental profits
Sportylook has no responsibility for the behaviour of its suppliers
Sportylook has a responsibility for the behaviour of its suppliers, and should require suppliers to comply with its own social standards
Sportylook should attempt to persuade its supplier of the need to treat employees fairly, but then leave it up to the supplier to decide if it wishes to comply with this request
Sportylook should recognise that different countries have different cultures, and while the use of child labour might be frowned on at home, it is acceptable in some countries
1 and 2 only
2 and 3 only
1 and 3 only
1,2 and 3
Reduce
Reuse
Recycle
Replace
Legitimate power
Referent power
Coercive power
Expert power
Amanda is a Regional Lending Manager with a major international bank. She has the authority to lend up to £1 million on an unsecured basis to any single corporate customer without reference to the bank’s head office. What sort of power does Amanda have?
Referent power
Expert power
Legitimate power
Reward power
Cerise can authorise her own travel expenses up to £1,000. Cerise will soon travel abroad on business, and she has a choice between flying economy class for £350 or flying business class for £1,050. Cerise is an old friend of the company’s travel administrator, Malcolm, who arranges bookings. She persuades him to book the business class seat. This is an example of Cerise exercising:
authority without power
power without authority
delegation of authority
power with authority
Michael is a Senior Manager working for Chirac plc. He decides to delegate completion of an internal report to one of his subordinates. In doing this, Michael is transferring to the subordinate:
authority, responsibility and power
authority, accountability and power
responsibility and authority
power, responsibility and accountability
Pamela is a Line Manager in the accounting function of Holland plc. This means that Pamela has line authority:
over a subordinate down the chain of command
to give specialist advice, but not the right to insist the advice is followed
over a project team’s function
in certain areas over another department
Which of the following managers is operating as a functional manager?
A human resources manager suggesting aptitude tests for managers to use when recruiting
An IT manager setting out rules for internet and email use
A manager setting targets for the workforce
A product manager asking IT and marketing staff to help with a big product launch
Andrew is a Manager in Fortwarren plc. He has to re-arrange a staff rota after a staff member fell ill. According to Henry Mintzberg, this forms part of Andrew’s:
decisional role
interpersonal role
disseminator role
informational role
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
Forming
Storming
Norming
Performing
A management consultant has identified that Samp plc’s organisational culture is outward-looking but controlling. Samp plc is, therefore:
an internal process culture
a rational goal culture
an open systems culture
a human relations culture
Malcolm is a Marketing Manager with Stone plc. The Marketing Director has primary responsibility for the company’s overall marketing strategies, but Malcolm has day-to-day responsibility for all aspects of the company’s marketing mix. This means that Malcolm will be responsible for:
a set of variables that he manages in order to achieve a desired response from the company’s various target markets
budgets setting out the volumes to be sold to the company’s various target markets
the sets of different features and benefits that are present in the company’s range of products
the types of advertising used by a firm to reach and influence its various target markets
In terms of authority, which of the following is the best description of a staff function?
A situation where a person is entitled to command another
A function that is carried out only at head office
A situation where a person can give advice and guidance to another
A function that is carried out locally only
In terms of the organisational iceberg, which three of the following are classified as covert variables affecting organisational behaviour in a company?
Formal goals
Attitudes
Underlying competencies and skills
Organisation design
Communication patterns
Hamid is the managing director of Welldean Ltd, a small company selling aromatherapy products. He has read about the benefits of market segmentation with regard to both competitive strategy and resource allocation. Adoption of market segmentation by Welldean Ltd would mean that:
the company would sell to only one section of the market
the market is broken down into several different sections
the company sees the aromatherapy market as homogeneous
the competitive scope of the company would be narrow
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
The process of dividing a market into homogeneous groups of potential customers who may be treated similarly for marketing purposes is called:
market research
mass marketing
marketing mix
market segmentation
The main influences on a business’s pricing are:
place, price, promotion and product
volume, variety, variation in demand and visibility
costs, competitors, customers and corporate objectives
people, processes and physical evidence
Harris plc has capital-intensive operations, with specialisation of work and well-established systems. Each month its operations manager is required to produce more items than in previous periods. Using the four Vs model, Harris plc’s operations manager is expected to manage:
high volume and high unit costs
high volume and low unit costs
low volume and low unit costs
low volume and high unit costs
Research into products which have obvious commercial or practical use is called:
market research
pure research
applied research
process research
What are the four elements of the procurement mix?
Price, product, place, promotion
Quantity, quality, price, lead time
Volume, variety, variation in demand and visibility
Costs, competitors, customers and corporate objectives
Wesley can give more focus to those tasks that require his management experience
Wesley can ask other people to do the tasks that he finds boring
Wesley can spend less time supervising
Wesley’s team will enjoy having more work to do
Pull marketing technique
Digital marketing technique
Push marketing technique
Direct marketing technique
Orders received from retailers
Deliveries of raw materials used to make the clothes
Trews Ltd’s online advertising and marketing campaigns
Distribution of clothes from Trews Ltd’s warehouse to the retailers
1 and 2
1 and 3
2 and 3
2 and 4
Identify which of the following statements about an organisation chart for Ginger plc are true. (1)The chart will show the degree of decentralisation in Ginger plc
(2) The chart will show the span of control in Ginger plc
(3) The chart will show the scalar chain in Ginger plc
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Entrepreneurial
Machine bureaucracy
Professional bureaucracy
Divisionalised
Identify which three of the following are Henry Mintzberg’s building blocks of an organisation.
Support staff
Middle line
Functional division
Ideology
Matrix structure
Jane’s job description at Glue Pot plc states that her role is part of the company’s technostructure. According to Henry Mintzberg, a technostructure:
ensures that an organisation follows its mission
provides ancillary services
standardises work processes
controls the work of the operating core
Benton plc is a machine bureaucracy. Which of the following characteristics is the company most likely to exhibit?
The technostructure exerts a pull towards standardised processes
The operating core exerts a pull towards standardised skills
The middle line exerts a pull towards fragmentation
The support staff exert a pull towards collaboration
Authority and responsibility
Subordination of individual interests
Unity of command
Division of work
The authoritarian style of its management
Its well-skilled workforce
Its large size
The slow pace of technological change in its markets
The effectiveness of communication across the company
In terms of structure, Platlet plc is a wide, flat organisation. Which three of the following characteristics is the company most likely to exhibit?
A greater need to delegate
Higher administration and overhead costs
Better communication between the strategic apex and operating core
Large spans of control
Slow decision making
Logical Computing Ltd adopts a wide, flat organisational structure. Which of the following is likely to present problems for the company?
Ensuring enough face-to-face contact takes place between superiors and staff members
High management overhead costs
Internal communication
Superiors not delegating enough work to staff
Which three of the following are characteristics of limited companies?
Perpetual succession
Separate legal personality
Financial statements can remain private
Simple withdrawal of capital
Regulation under the Companies Act 2006
Tom Burns and G M Stalker classified organisations as ‘mechanistic’ or ‘organic’. Which of the following is an appropriate description of a mechanistic organisation?
Commitment to organisation’s mission
Network structure of control
Relatively flexible job descriptions
Suitable for slow moving environments
Statements 1 and 2
Statements 2 and 3
Statements 1 and 3
Statements 1, 2 and 3
Imperiax Ltd wishes to expand abroad. It has agreed with a foreign manufacturer of a complementary product to market both products jointly in both countries. What method of expansion has Imperiax Ltd adopted?
A group structure
A joint venture
A strategic alliance
A licensing agreement
A floating charge cannot be used to secure borrowing
Angela’s liability is unlimited
The business’s liability is unlimited
Financial statements do not have to be filed with the Registrar of Companies
The stringent legal rules that apply to the business’s constitution
Sales management
Financial reporting for the London Stock Exchange
Periodic management accounts
Research and development
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
It prevents him from employing staff to help with the contract.
It gives him personal liability for any failure of his in relation to the hospital IT system.
It prevents him from obtaining a loan to obtain the equipment.
It allows him to issue shares in his business to friends and family.
Pliar Ltd is considering a number of business structures to market a new product with Secateur Ltd’s help. Which of the following business structures is a joint venture?
Buy Secateur Ltd and market the product through that company
Form a project team with employees of both Secateur Ltd and Pliar Ltd and market the product through that team
With Secateur Ltd as equal partner, form Plicateur Ltd and market the product through that company
Sell Secateur Ltd the right to market the product in return for a percentage of the revenues D
Duties and responsibilities of the role
Job title
Organisation chart showing all positions within Huff plc
Huff plc’s health and safety policy
Pay grade
The organisational structure for Grenestede Ltd is flat compared to many businesses. There are only three levels in its hierarchy, directors, managers and workers.
Requirement 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 training
Which of the following business structures necessarily has a legal identity separate from that of its owner(s)?
a joint venture between two limited liability companies
a general partnership
a limited liability partnership
a strategic alliance
In the home computer market, laptop computers are an example of a:
product form
brand
product class
generic product
Nevin works for Dorchester plc. Nevin’s manager has asked him to undertake an internal analysis of the company as part of a strategic planning review.
Requirement Which three of the following analytical techniques will be useful in this context?
Value chain analysis
Porter’s five forces analysis
The BCG Matrix
PESTEL analysis
Analysis of distinctive competencies
Sharma is carrying out a PESTEL analysis for her employer, Decron plc. During her research Sharma has realised the ageing of the UK’s population is a potentially important strategic issue for the company. In which section of her analysis should Sharma record this matter?
P
S
T
L
The Marketing Director of Birstall plc is formulating whether one of the company’s products, which is aimed at a small niche market, should be differentiated from its close competitors. At this stage she is unsure how such differentiation would be achieved in practice. The decision on whether to differentiate or not is a decision concerning the company’s:
functional strategy
business strategy
competitive strategy
product/market strategy
Low initial capital costs
A customer base consisting of a few large customers
A highly competitive supplier market
The market is for services rather than manufacturing
1
2
3
4
Keep this stakeholder informed at all times about the company
Keep this stakeholder satisfied with regard to the company and its strategies
Take minimum effort with regard to this stakeholder as he always complains
Treat this stakeholder as a key player when formulating future strategies
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 leadership
cost focus
differentiation focus
either a hold or a divest strategy
either a hold or a harvest strategy
either a build or a harvest strategy
a build strategy
Nextron plc manufactures washing machines. It has a 20% share of the UK market. The company wants to increase its revenues so has decided to add tumble dryers to its range of products. In terms of Ansoff’s matrix, this represents a growth strategy of:
market penetration
market development
product development
diversification
The board of directors of Swinson plc is evaluating whether to pursue a new strategic option for a major strategic business unit. The final decision should be judged against which three of the following criteria?
A cost of entry test
An acceptability test
A suitability test
A feasibility test
An attractiveness test
Hold
Harvest
Divest
Build
Which of the following statements about a product life cycle diagram is true?
The life cycle diagram predicts when the decline phase will start
Sales growth always follows the introduction of a product
Profits are normally highest during the maturity phase
The mature phase usually lasts about 10 years
laid back
a tiger
selective
stochastic
Manson Ltd aims to pursue a differentiation strategy for its Portex sliding-door product. Requirement Which three of the following will form part of this strategy?
Action to minimise labour and overhead costs
Action to improve productivity
Improved product features and benefits
Promotion of the Portex brand
Use of higher quality materials in the manufacturing process
Glenway Ltd sells package holidays from a chain of retail outlets. Brantham Ltd sells new and used cars from a chain of car dealerships. Glenway Ltd and Brantham Ltd are:
brand competitors
industry competitors
generic competitors
form competitors
Inbound logistics
Procurement
Firm infrastructure
Marketing and sales
Service
Option 1
Option 2
Option 3
Option 4
It will identify Simian plc’s strengths and weaknesses
It will allow a detailed analysis of the structure of the financial services industry
It will act as a detailed checklist to assist in understanding the different influences in Simian plc’s environment
It will help to identify the relative levels of interest and power of Simian plc’s stakeholders
Strategy (1): A corporate strategy; Strategy (2): Not a corporate strategy
Strategy (1): Not a corporate strategy; Strategy (2): Not a corporate strategy
Strategy (1): A corporate strategy; Strategy (2): A corporate strategy
Strategy (1): Not a corporate strategy; Strategy (2): A corporate strategy
Statement (1) accurate; Statement (2) inaccurate
Statement (1) inaccurate; Statement (2) inaccurate
Statement (1) accurate; Statement (2) accurate
Statement (1) inaccurate; Statement (2) accurate
A dog
A question mark
A cash cow
A star
external reporting to shareholders
recording financial transactions
managing cash
internal reporting to operational managers
Maureen is employed in the finance function of Gralam plc. Her duties are to ensure that the company always has sufficient funds available to meet both its short-term and long-term financial requirements. It is clear that Maureen is employed by Gralam plc in its:
financial reporting section
management accounting section
treasury management section
transaction processing section
Which three of the following are characteristics of management accounting information rather than financial reporting information?
It is both forward looking and historical
It is primarily used by shareholders
It is likely to include a statement of cash flows
It is likely to include a cash flow forecast
It is likely to include budgetary information
Harold is an accountant with Farnworth plc. He was asked to join a project team examining the company’s compliance with both FRC and IASB standards. It appears, therefore, that Harold has been recruited into this project team to exploit his expertise in:
financial reporting
performance measurement
corporate governance
information systems
Community representatives
Employees
Shareholders
Managers
When a company’s finance function prepares financial statements in accordance with legal rules and accounting standards, it is engaged in the support activity of:
record-keeping and stewardship
planning and control
external reporting
internal reporting
Mainstream Ltd’s finance director is establishing an effective system in the finance function for producing management accounting reports. Which issue should be the finance director’s primary consideration?
The information needs of the company’s managers
The need for effective internal control mechanisms
The need for cost-effectiveness
The need for effective information security
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
1 = effectiveness; 2 = economy; 3 = efficiency
1 = economy; 2 = efficiency; 3 = effectiveness
1 = efficiency; 2 = effectiveness; 3 = economy
1 = economy; 2 = effectiveness; 3 = efficiency
Which statement about critical success factors (CSFs) for a business is true?
Low costs will always be a CSF; high sales revenue will always be a CSF.
Low costs will always be a CSF; high sales revenue will not always be a CSF.
Low costs will not always be a CSF; high sales revenue will always be a CSF.
Low costs will not always be a CSF; high sales revenue will not always be a CSF.
Three basic approaches to performance measures are measures of economy, efficiency, and effectiveness. Economy is measured by:
the amount of resources used for the tasks that have been achieved
the success in achieving goals and targets
team member satisfaction and the motivational climate
the success of the team or work group in controlling its costs
Statement (1) true; Statement (2) false
Statement (1) false; Statement (2) false
Statement (1) true; Statement (2) true
Statement (1) false; Statement (2) true
Tom works in the finance function of Bateman Ltd, which trades with many companies around the world. His duties involve managing the company’s foreign exchange requirements. From this it can be seen that Tom is employed by Bateman Ltd in its finance function’s:
financial reporting section
management accounting section
treasury management section
financial transaction recording section
Statement (1) true; Statement (2) false
Statement (1) false; Statement (2) false
Statement (1) true; Statement (2) true
Statement (1) false; Statement (2) true
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
Which two of the following encourage organisations to improve reporting of their economic, environmental and social impact?
The International Accounting Standards Board (IASB)
The Task Force on Climate-related Financial Disclosures (TCFD)
Global Reporting Initiative (GRI) standards
The Climate Disclosure Standards Board framework (CDSB)
The Triple Bottom Line approach
Physical
Market
Policy and legal
Technology
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
The area outside an information system boundary is known as the:
location
setting
context
environment
The directors of Royguard plc have recently decided to establish an extensive management information system within one of its subsidiaries. In arriving at this decision, the directors were likely to have been conscious that the subsidiary’s operations were largely characterised by:
structured decisions
unstructured decisions
non-programmable decisions
non-routine decisions
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 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
Ranger plc’s information systems manager wants all data on the company’s databases to be the same as their sources and not to have been accidentally or deliberately altered, destroyed or disclosed. His concern, therefore, is with:
data accuracy
data integrity
data authenticity
data completeness
prevention
detection
deterrence
correction
completeness
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 characteristics relates to strategic information as opposed to operational information?
often based on estimates
often very detailed
mostly very accurate
usually routine
The depreciation policies adopted by Plumtree Ltd have not changed for the past five years. According to the IFRS Conceptual Framework, this supports the qualitative characteristic for its financial information of:
understandability
relevance
timeliness
comparability
As a result of reading the financial statements of Tatra plc, Michaela decided to increase her shareholding in the company. In terms of the IFRS Conceptual Framework, this confirms that the information in Tatra plc’s financial statements was:
positive
timely
material
relevant
Changes to Merrick Ltd’s transaction processing system can only be made by people who are accountable for the changes. This contributes towards which one of the essential qualities of a secure information system?
confidentiality
integrity
non-repudiation
authorisation
confidentiality
availability
non-repudiation
authorisation
Issues 1 and 2 only
Issues 2 and 3 only
Issues 1 and 3 only
Issues 1, 2 and 3
In relation to users of financial information, which of the following statements is true?
External users evaluate the performance of a company’s management using management accounting.
Financial reporting provides information to managers and people outside the company, such as investors.
Management accounting provides information to managers and people outside the company, such as investors.
Financial reporting generates confidential information for internal decision makers such as executives and management.
The IFRS conceptual Framework states that, to support the effective working of capital markets for the benefit of businesses, financial statements must have which two fundamental qualitative characteristics?
Understandability
Relevance
Faithfulness of representation
Comparability
Verifiability
Russell is an accountant working for Forsell plc. He has made the following points concerning financial statements. Which of Russell’s points is true?
Financial statements are used mainly by management.
Financial statements are used by parties internal to the business only.
Financial statements are used only by investors.
Financial statements are used by investors, payables (creditors) and management.
Which of the following definitions best describes the characteristic of integrity in relation to the security of data and information systems?
Data can be accessed as and when required, by authorised people
Data stored in the system is the same as its sources and has not been altered or corrupted
Data is obtained from reliable and verifiable sources
Data cannot be accessed by anyone who does not have the right to see it
