Business Awareness Flashcards
7 cards from real AAT L3 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Awareness flashcards as text
Under the UK Corporate Governance Code, which principle requires that a board acts as a responsible custodian of the company for the long-term benefit of all stakeholders?
Answer: Stewardship
Stewardship requires directors and boards to act responsibly as long-term custodians of the company, balancing the interests of shareholders and wider stakeholders.
In a PESTLE analysis, new UK employment legislation granting workers additional statutory rights would fall under which factor?
Answer: Legal
Changes in employment law are classified under the Legal factor in a PESTLE analysis as they represent legislative requirements that businesses must comply with.
Which of the following would typically be included in the financial section of a formal business plan?
Answer: Cash flow forecasts and projected profit and loss statements
The financial section of a business plan contains forward-looking financial statements such as cash flow forecasts and projected profit and loss accounts to demonstrate financial viability.
Under the Companies Act 2006, UK private limited companies are required to file their annual accounts with which organisation?
Answer: Companies House
All UK limited companies are legally required to file their annual accounts with Companies House, the official government registrar of companies.
Corporate Social Responsibility (CSR) is BEST described as:
Answer: A voluntary commitment by businesses to operate ethically and contribute positively to society and the environment
CSR is a voluntary approach where businesses choose to go beyond legal minimums to act ethically, contribute to community welfare, and minimise environmental impact.
A UK manufacturer purchases one of the companies that supplies its raw materials. This is an example of which type of business integration?
Answer: Vertical backward integration
Acquiring a supplier represents vertical backward integration, as the business moves further up its supply chain towards the source of raw materials.
Which of the following BEST represents an Environmental factor that a UK business would consider during a PESTLE analysis?
Answer: New legislation requiring large businesses to report and reduce their carbon emissions
Legislation requiring carbon emission reporting and reduction directly reflects environmental pressures and sustainability obligations that businesses must plan for.