WorksheetsSECTION 1: BUSINESS ENVIRONMENT, STRATEGY & MANAGEMENT
Total questions: 100
Worksheet time: 50mins
Which of the following describes a "Stakeholder" perspective of governance?
The company exists solely to maximize profit for the owners.
The company has responsibilities to a wide range of groups including employees, customers, and the community.
The company is controlled by the government.
The company prioritizes short-term stock prices over long-term growth.
In the PESTEL framework, new legislation regarding waste disposal falls under:
Political
Economic
Social
Legal / Environmental
According to Ansoff’s Matrix, selling existing products to existing markets is known as:
Market Development
Product Development
Market Penetration
Diversification
Which of the following is a primary objective of a commercial business?
Provision of a public service
Wealth maximization for shareholders
Maximizing tax payments
Ensuring zero staff turnover
A "Tall" organizational structure is characterized by:
Wide spans of control
Few levels of management
Narrow spans of control and many levels of management
Decentralized decision making
According to Mendelow’s Matrix, a stakeholder with High Power and High Interest should be:
Ignored
Kept informed
Kept satisfied
Managed closely (Key Player)
The "Technostructure" in Mintzberg’s configuration refers to:
The factory workers
The top management team
Analysts and accountants who standardize work processes
The legal support team
Which of the following is an example of a "Connected" stakeholder?
Directors
Customers
Government
Trade Unions
In the BCG Matrix, a "Cash Cow" is a product with:
High market share in a high-growth market
Low market share in a high-growth market
High market share in a low-growth market
Low market share in a low-growth market
Inflation is best defined as:
An increase in the value of the currency.
A sustained increase in the general price level of goods and services.
A decrease in interest rates.
An increase in the unemployment rate.
Which leadership style involves the manager retaining all authority and decision-making power?
Democratic
Laissez-faire
Autocratic
Delegative
Which stage of Tuckman’s group development involves conflict and rebellion against the leader?
Forming
Storming
Norming
Performing
Porter’s Five Forces model includes which of the following?
Bargaining power of employees
Threat of substitutes
Threat of inflation
Government regulation
Which corporate culture (Charles Handy) is represented by a "Spider’s Web"?
Role Culture
Task Culture
Power Culture
Person Culture
A company that focuses on a narrow market segment and attempts to offer a unique product is pursuing which Porter strategy?
Cost Leadership
Differentiation Focus
Cost Focus
Mass Marketing
Decentralization refers to:
Moving the head office to a rural area.
Delegating decision-making authority to lower levels of the organization.
Removing middle management.
Outsourcing all production.
Which of the following is a disadvantage of a Matrix Structure?
Lack of specialized skills
Conflicting loyalties (Dual Command)
Slow communication
Lack of flexibility
Fiscal Policy involves the government managing the economy through:
Interest rates and money supply
Taxation and government spending
Exchange rates
Employment laws
If the central bank increases interest rates, what is the likely impact on business investment?
It will increase significantly.
It will decrease due to the higher cost of borrowing.
It will remain exactly the same.
It will cause inflation to rise.
"Theory X" managers believe that:
Employees enjoy work and seek responsibility.
Employees are lazy, dislike work, and need coercion.
Money is not a motivator.
Teams work best without supervision.
A mission statement usually describes:
The detailed financial targets for the next year.
The fundamental purpose and reason for the company's existence.
The marketing budget.
The list of shareholders.
Outsourcing is defined as:
Selling the company to a foreign investor.
Contracting out a business function to an external provider.
Hiring more internal staff.
Buying a supplier.
Which type of unemployment is caused by a general downturn in the economy (recession)?
Frictional unemployment
Structural unemployment
Cyclical unemployment
Seasonal unemployment
Identify the "S" in a SWOT analysis.
Strategy
Strengths
Sales
Systems
The "Middle Line" in Mintzberg’s structure connects:
The Technostructure to the Support Staff.
The Strategic Apex to the Operating Core.
The Shareholders to the Board.
The Customers to the Suppliers.
Which of the following is an example of a "Social" factor in PESTEL?
Introduction of GST/VAT.
Rise in single-person households.
New data protection laws.
Changes in the exchange rate.
What is "Satisficing"?
Maximizing profit at all costs.
Making a decision that is "good enough" rather than optimal, often to satisfy multiple stakeholders.
A strategy to destroy competitors.
A method of calculating tax.
In a "Role Culture" (Greek Temple), power is based on:
Personal charisma.
Position and rules.
Technical expertise.
Who you know.
Horizontal integration occurs when a company:
Buys its supplier.
Buys its customer.
Buys a competitor at the same stage of production.
Diversifies into a totally different industry.
Which is a characteristic of a "Virtual Organization"?
It has a large physical headquarters.
It operates primarily through electronic communication and outsourcing.
It prohibits working from home.
It has many layers of management.
"Referent Power" is based on:
The ability to punish.
The ability to reward.
Identification, charisma, and admiration.
Legal authority.
Identify the "Question Mark" (Problem Child) in the BCG Matrix.
High Share, High Growth.
Low Share, Low Growth.
Low Share, High Growth.
High Share, Low Growth.
Which department is typically responsible for health and safety training?
Marketing
Finance
Human Resources (HR)
R&D
Maslow’s Hierarchy of Needs places what at the top of the pyramid?
Physiological needs
Safety needs
Social needs
Self-actualization
A "Divisional Structure" is usually organized by:
Function (e.g., Marketing, Finance).
Product, Geography, or Market.
Project teams.
Skill level.
Which PESTEL factor covers the "automation of production processes"?
Technological
Economic
Environmental
Legal
"Corporate Governance" primarily deals with:
How the government taxes companies.
How companies are directed, controlled, and held accountable.
The daily management of staff.
The marketing strategy.
In Ansoff’s matrix, "Diversification" involves:
New Products in New Markets.
New Products in Existing Markets.
Existing Products in New Markets.
Existing Products in Existing Markets.
Microeconomics is concerned with:
The economy as a whole (inflation, GDP).
The behavior of individual firms and households.
Global trade agreements.
Government fiscal policy.
Which of the following represents an "Internal" stakeholder?
Employee
Supplier
Customer
Local Government
The "Strategic Apex" (Mintzberg) refers to:
The support staff (e.g., cafeteria, cleaning).
The middle management.
The top directors/senior executives.
The shop floor workers.
A "Task Culture" (The Net) focuses on:
Following rules strictly.
Getting the job/project done using the best resources.
Celebrating one central leader.
Individual freedom.
Within the value chain, which is a "Support Activity"?
Inbound Logistics
Operations
Technology Development
Service
Which style of management allows employees the most freedom?
Autocratic
Consultative
Laissez-faire
Paternalistic
Which economic system relies on supply and demand to set prices with little government intervention?
Planned Economy
Free Market Economy
Mixed Economy
Command Economy
A "Barrier to Entry" in an industry might be:
Low startup costs.
High capital requirements or patents.
Many competitors.
Easy access to suppliers.
The "4 Ps" of the Marketing Mix are Product, Price, Place, and:
Process
Promotion
People
Physical Evidence
Which of these is a "hygiene factor" according to Herzberg?
Recognition
Achievement
Salary/Working Conditions
Responsibility
Strategic planning is usually undertaken by:
Junior managers (short term).
Middle managers (medium term).
Senior management (long term).
Supervisors (daily).
Which Ansoff strategy is considered the highest risk?
Market Penetration
Market Development
Product Development
Diversification
The primary purpose of external financial reporting is to:
Minimize tax liabilities.
Provide information to owners and creditors for decision making.
Calculate the exact value of the company.
Prevent all fraud.
Which body publishes International Financial Reporting Standards (IFRS)?
FASB
IASB
IFAC
OECD
In the "Three E's" of Value for Money, "Efficiency" refers to:
Getting the lowest price for inputs.
Getting the best output for the resources used.
Achieving the intended objectives.
Following the law.
Which of the following is a "Capital Market" instrument?
Treasury Bill (3 months)
Commercial Paper
Corporate Bond (10 years)
Certificate of Deposit
A "Debenture" is a type of:
Equity share
Long-term loan/debt
Bank overdraft
Government grant
"Segregation of Duties" is a control designed to:
Reduce the risk of error and fraud.
Speed up the accounting process.
Reduce staff costs.
Ensure all staff work in one room.
Who appoints the External Auditors of a public company?
The CEO
The Finance Director
The Shareholders (at the AGM)
The Government
Which ethical principle requires an accountant not to compromise professional judgment because of bias or conflict of interest?
Integrity
Objectivity
Confidentiality
Professional Competence
"Window Dressing" in accounting refers to:
Designing the company website.
Manipulating accounts to make the company look better than it is.
Following IFRS strictly.
Improving office decor.
Which of the 4 Vs of Big Data refers to the uncertainty or trustworthiness of data?
Volume
Velocity
Variety
Veracity
A "Self-Review Threat" occurs when:
An auditor audits work they previously prepared themselves.
An auditor promotes the client’s shares.
An auditor is afraid of the client.
An auditor has a financial interest in the client.
Blockchain is best described as:
A centralized database.
A distributed, immutable digital ledger.
A cloud storage service.
A type of anti-virus software.
In the TARA risk model, "Transfer" usually involves:
Ignoring the risk.
Ceasing the risky activity.
Buying insurance or outsourcing.
Improving internal controls.
Which financial statement shows the company’s financial position at a specific date?
Statement of Profit or Loss
Statement of Cash Flows
Statement of Financial Position (Balance Sheet)
Statement of Changes in Equity
Which of the following is a source of Short-Term finance?
Initial Public Offering (IPO)
Bank Overdraft
Mortgage
Venture Capital
The "Audit Committee" should be comprised primarily of:
Executive Directors
Independent Non-Executive Directors (NEDs)
The External Auditors
The Finance Department staff
"Phishing" is a cyber-attack that involves:
Flooding a website with traffic (DDoS).
Sending deceptive emails to trick users into revealing sensitive info.
Locking files and demanding a ransom.
Physically stealing a laptop.
The "Triple Bottom Line" measures performance in:
Sales, Profit, Cash.
Profit, People, Planet.
Assets, Liabilities, Equity.
Economy, Efficiency, Effectiveness.
Which type of system is designed to help senior managers make unstructured strategic decisions?
Transaction Processing System (TPS)
Executive Information System (EIS)
Management Information System (MIS)
Payroll System
Under the IESBA Code, "Confidentiality" can be breached if:
The auditor feels like it.
There is a legal or professional right/duty to disclose.
A competitor asks for the information.
The information is interesting to the press.
What is "Fintech"?
Finance for technology companies.
Technology used to support or enable banking and financial services.
A type of tax.
A stock market index.
Working Capital is:
Non-current assets.
Current Assets minus Current Liabilities.
Total Equity.
Cash only.
Which function is responsible for raising finance and managing cash flow?
Financial Accounting
Management Accounting
Treasury Management
Audit
A "Rights Issue" involves:
Selling shares to the general public.
Offering new shares to existing shareholders at a discount.
Selling shares to a venture capitalist.
Borrowing from a bank.
"Cloud Computing" allows users to:
Access data and applications over the internet.
Compute data without electricity.
Prevent all cyber attacks.
Store data on floppy disks.
Which is an "Advocacy Threat"?
Promoting a client’s position to the point where objectivity is compromised.
Owning shares in the client.
Being a close friend of the client.
Being threatened with dismissal.
The primary role of the Internal Auditor is to:
Express an opinion on the truth and fairness of accounts to shareholders.
Advise management on internal controls and risk management.
Detect every single error.
Prepare the financial statements.
Machine Learning is a subset of:
Blockchain.
Artificial Intelligence (AI).
Cloud Computing.
Internet of Things (IoT).
Which document is sent to a supplier to request goods?
Invoice
Goods Received Note
Purchase Order
Statement of Account
"Corporate Social Responsibility" (CSR) refers to:
The legal obligation to pay tax.
Voluntary actions a company takes to operate in an economic, social, and environmentally sustainable manner.
The responsibility to maximize dividends.
The responsibility to hire friends of the director.
What is a "Unicorn" in business terms?
A startup company valued at over $1 billion.
A fraud scheme.
A hostile takeover.
A rare type of share.
Identify the "Intimidation Threat".
Auditor has a long relationship with the client.
Client threatens to switch auditors if they don't agree to the accounting treatment.
Auditor holds shares in the client.
Auditor acts as a lawyer for the client.
Data "Encryption" is used to:
Delete data permanently.
Compress data size.
Scramble data so it is unreadable without a key.
Analyze data for trends.
"Venture Capital" is most suitable for:
Large established PLCs.
Government departments.
High-growth, high-risk startups.
Charities.
Which is a "Preventative Control"?
Bank reconciliation.
Passwords and biometrics restricting access.
Variance analysis reports.
Audit trail review.
The "Internet of Things" (IoT) refers to:
A website selling things.
A network of physical objects embedded with sensors/software to exchange data.
Virtual Reality.
High-speed fiber internet.
Management Accounting is primarily for:
External stakeholders (Banks, Shareholders).
Internal management decision making.
Tax authorities.
The general public.
"Money Laundering" involves:
Washing banknotes.
Concealing the origins of illegally obtained money.
Printing counterfeit money.
Giving money to charity.
What is "GDPR"?
A tax regulation.
A regulation on data protection and privacy.
A standard for financial reporting.
A type of software.
"Limited Liability" means:
Shareholders are liable for all company debts.
Shareholders can only lose the amount they invested in shares.
The company cannot be sued.
Directors are personally liable for everything.
Which of the following is an "Intangible Asset"?
Building
Machinery
Patent / Goodwill
Inventory
A "Stakeholder" in a pension fund is:
Only the government.
Anyone with an interest in the fund (contributors, pensioners, trustees).
"Professional Behavior" implies:
Always wearing a suit.
Complying with laws and avoiding actions that discredit the profession.
Charging high fees.
Never socializing with clients.
Which market involves the trading of foreign currencies?
Stock Market
Commodity Market
Forex Market
Derivatives Market
"Ransomware" is:
Software that protects data.
Malware that encrypts user data and demands payment to unlock it.
A firewall.
A secure payment gateway.
The "Agency Problem" arises because:
Agents (Directors) may act in their own interest rather than the Principals' (Shareholders) interest.
Directors work too hard.
Shareholders intervene too much.
Agents are underpaid.
"Just-in-Time" (JIT) inventory systems aim to:
Hold massive stocks "just in case".
Minimize inventory holding costs by receiving goods only when needed.
Increase warehouse size.
Delay payments to suppliers.
Which is a specific characteristic of a "Profession" (like Accounting)?
High salary.
A code of ethics and self-regulation.
Working in an office.
wearing a uniform.
"Automation" generally leads to:
Increased manual labor.
Reduced consistency.
Improved efficiency and reduced error rates.
Higher costs in the long run.
If a company is "Highly Gearing" (Leveraged), it has:
High levels of debt relative to equity.
No debt.
High cash reserves.
High inventory levels.
