ACCA Accountant in Business 5

Question 1

Which of the following is a key feature of a 'limited liability company' (LLC / Ltd)?

Accepted Answer

The company has a legal identity separate from its owners

Answer

Incorporation creates a separate legal entity, meaning shareholders' liability is limited to their investment.

Question 2

What is the purpose of a 'code of ethics' in a professional accounting body such as ACCA?

Accepted Answer

To establish principles and rules governing professional behavior and integrity

Answer

A code of ethics defines the values and conduct expected of members, including integrity, objectivity, and professional competence.

Question 3

Which motivation theory identifies 'hygiene factors' (e.g., salary, working conditions) that prevent dissatisfaction but do not motivate on their own?

Accepted Answer

Herzberg's two-factor theory

Answer

Herzberg distinguished between hygiene factors (which cause dissatisfaction if absent) and motivators (which actively drive performance).

Question 4

Which of the following describes a 'matrix' organizational structure?

Accepted Answer

Employees report to both a functional manager and a project manager simultaneously

Answer

A matrix structure overlays project or product teams on functional departments, creating dual reporting lines.

Question 5

An organization experiences a flood that destroys its server room. Which type of risk does this represent?

Accepted Answer

Operational risk

Answer

Operational risk includes losses from failed internal processes, systems, or external events such as natural disasters.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Accountant in Business 5