ACCA Accountant in Business 3

Question 1

Which of the following is a characteristic of a 'tall' organizational structure?

Accepted Answer

Narrow span of control with many management levels

Answer

Tall structures have many layers of management with each manager overseeing a small number of subordinates.

Question 2

According to the CIMA/ACCA ethical framework, which threat arises when an accountant audits financial statements they personally prepared?

Accepted Answer

Self-review threat

Answer

A self-review threat occurs when a professional must evaluate their own previous work, impairing objectivity.

Question 3

Which stakeholder group is typically classified as having HIGH power and HIGH interest in a company according to Mendelow's matrix?

Accepted Answer

Key investors and major creditors

Answer

Key investors and major creditors have both significant power to influence decisions and high interest in outcomes, placing them in the 'manage closely' quadrant.

Question 4

What does the term 'principal-agent problem' describe in a corporate context?

Accepted Answer

Conflict of interest between shareholders (principals) and managers (agents)

Answer

The principal-agent problem arises because managers may pursue their own interests rather than maximizing shareholder value.

Question 5

Which of the following is an example of a macro-environmental factor in a PESTEL analysis?

Accepted Answer

A change in the national interest rate set by the central bank

Answer

Interest rate changes are an economic (E) factor in PESTEL, representing the broader macro-environment beyond the organization's control.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Accountant in Business 3