ACCA AK Business & Technology 3 — Questions and Answers
Question 1: Which of the following describes a 'public sector' organisation?
- A company listed on a stock exchange
- An organisation owned and funded by the government (Correct answer)
- A charity registered with the Charity Commission
- A partnership of professionals such as solicitors
Correct answer: An organisation owned and funded by the government
Public sector organisations are owned and operated by the government, funded through taxation, and aim to provide public services rather than profit.
Question 2: The Data Protection Act / UK GDPR requires organisations to:
- Share personal data freely between departments
- Process personal data lawfully, fairly and transparently (Correct answer)
- Retain all personal data indefinitely
- Make all personal data publicly available
Correct answer: Process personal data lawfully, fairly and transparently
UK GDPR requires that personal data is processed lawfully, fairly and in a transparent manner, respecting individuals' rights over their information.
Question 3: Which of the following is a feature of a 'functional' organisational structure?
- Employees are grouped by product or service
- Employees are grouped by specialist activity such as finance or HR (Correct answer)
- Each product line has its own management team
- Geographic regions each have full operational autonomy
Correct answer: Employees are grouped by specialist activity such as finance or HR
In a functional structure, employees with similar skills and tasks are grouped together into departments (e.g., finance, marketing, HR).
Question 4: What is meant by 'social responsibility' in a business context?
- A company's legal obligation to pay corporation tax
- The duty of a business to consider the interests of society and the environment alongside profit (Correct answer)
- The responsibility of employees to follow workplace rules
- The obligation to produce accurate financial statements
Correct answer: The duty of a business to consider the interests of society and the environment alongside profit
Corporate social responsibility (CSR) means a business acts ethically and considers its impact on society, the environment and stakeholders beyond just shareholders.
Question 5: Which of the following best describes a 'virtual organisation'?
- A large organisation with multiple physical locations
- An organisation that primarily uses technology and outsourcing, having minimal physical infrastructure (Correct answer)
- A government-owned enterprise
- A sole trader operating from home
Correct answer: An organisation that primarily uses technology and outsourcing, having minimal physical infrastructure
A virtual organisation uses technology and networks of external providers to deliver products or services with little physical presence, enabling flexibility and low overhead.
Question 6: A 'mission statement' in an organisation primarily serves to:
- Set detailed operational targets for each department
- Communicate the fundamental purpose and values of the organisation (Correct answer)
- List the financial objectives for the coming year
- Define the reporting structure of the organisation
Correct answer: Communicate the fundamental purpose and values of the organisation
A mission statement expresses the organisation's fundamental purpose — why it exists and what it stands for — guiding strategy and culture.
ACCA AK Business & Technology 3
Which of the following describes a 'public sector' organisation?