ACCA AK Business & Technology 2

Question 1

Centralisation of authority in an organisation means:

Accepted Answer

All significant decisions are made at or near the top of the hierarchy

Answer

Centralisation concentrates decision-making authority at the top of the organisation, ensuring consistency but potentially slowing response times.

Question 2

Which of the following is an example of a non-financial performance indicator?

Accepted Answer

Customer satisfaction score

Answer

Customer satisfaction score measures performance in non-monetary terms; the others are all financial ratios derived from accounting data.

Question 3

The concept of 'span of control' refers to:

Accepted Answer

The number of subordinates directly reporting to a manager

Answer

Span of control is the number of employees directly supervised by one manager. Wide spans suit flat structures; narrow spans suit tall structures.

Question 4

Which stakeholder group would typically be most concerned with an organisation's ability to repay its debts?

Accepted Answer

Lenders/creditors

Answer

Lenders and creditors are primarily concerned with the organisation's ability to service and repay debt, making liquidity and solvency key interests.

Question 5

According to Mendelow's matrix, stakeholders with HIGH power and HIGH interest should be:

Accepted Answer

Managed closely

Answer

Mendelow's matrix places high-power, high-interest stakeholders in the 'key players' quadrant, requiring close management and active engagement.

ACCA Applied Knowledge Practice Test