ACCA AK Business & Technology 4

Question 1

Which of the following best describes 'professional scepticism' in the context of accountancy?

Accepted Answer

Maintaining a questioning mind and critically assessing evidence

Answer

Professional scepticism means having a questioning mind, being alert to conditions that may indicate misstatement, and critically evaluating audit evidence.

Question 2

A SWOT analysis examines:

Accepted Answer

Strengths, Weaknesses, Opportunities and Threats

Answer

SWOT analysis is a strategic planning tool assessing internal Strengths and Weaknesses, and external Opportunities and Threats facing an organisation.

Question 3

Which of the following is an example of an 'autocratic' leadership style?

Accepted Answer

The leader makes decisions alone without consulting others

Answer

Autocratic leaders make decisions unilaterally without consulting subordinates, retaining tight control. This can be efficient in crises but may reduce motivation.

Question 4

The primary objective of a private sector company is generally considered to be:

Accepted Answer

Maximising shareholder wealth

Answer

In traditional financial theory, the primary objective of a company is to maximise shareholder wealth (value), though this must be balanced with stakeholder and ethical considerations.

Question 5

Which of the following correctly describes 'delegation'?

Accepted Answer

Assigning responsibility and authority for a task to a subordinate while retaining accountability

Answer

Delegation means giving a subordinate the authority and responsibility to carry out a task, though the delegating manager remains ultimately accountable for the outcome.

ACCA Applied Knowledge Practice Test

ACCA Applied Knowledge Practice Test

ACCA AK Business & Technology 4