Problem questions Flashcards
B Ltd manufactures motorbikes. Which of the following would form part of the ‘threat of substitutes’ within Porter’s Five Forces model?
- V Ltd – a competing manufacturer of motorbikes
- F Ltd – a company that is considering entering the motorbike market for the first time in the near future
- S Ltd – a company that manufactures motor cars
- H Ltd – a company that supplies B with many of the components it uses in its motor bikes
S Ltd – a company that manufactures motor cars
Q is currently unemployed. He previously worked in a coal mine, which was a major employer in his home town. The mine has closed down due to a significant downturn in demand for coal within his country’s economy. Q is finding it hard to find new work as his mining skills are no longer needed.
What type of unemployment is Q experiencing?
- Frictional
- Cyclical
- Structural
- Real wage
Structural
A and B are currently in dispute over a contract. A is arguing that the contract is not valid as she received no value from B.
What aspect of a simple contract is A arguing that the contract is missing?
- Capacity
- Intent
- Agreement
- Consideration
Consideration
Peterson Supplies is a manufacturing organisation specialising in lights and fixtures operating in Europe. Which of the following decisions below would be categorised as tactical planning within the organisation?
- Relocating the main factory to the Far East to take advantage of cheaper labour
- Acquisition of a smaller manufacturing firm in South America
- Upgrade of machinery to include CAD/CAM techniques
- The decision to outsource its back office function (HR, payroll, sales) in one of its Eastern European subsidiaries
- Redundancy decisions for staff in the Eastern European subsidiary due to the outsourcing
The decision to outsource its back office function (HR, payroll, sales) in one of its Eastern European subsidiaries
Which of the following would be a typical advantage of a divisional structure?
- Clear responsibility for different products
- Improved goal congruence
- Improved control
- Rapid decision making
Clear responsibility for different products
Which of the following writers on culture suggested that the first leaders of a company create its culture?
- Handy
- Hofstede
- Kotter
- Schein
Schein
A purchase made on credit will be recorded by an organisation in several different places. These include:
(i) The general ledger
(ii) The financial statements
(iii) The purchase day book
what is the correct order of these steps?
(iii), (i), (ii)
Which of the following organisations gives guidance on topical issues that are not covered in an accounting standard or where the guidance is conflicting?
- Standards Advisory Council (SAC)
- International Accounting Standards Board (IASB)
- International Accounting Standards Committee Foundation (IASCF)
- International Financial Reporting Interpretations Committee (IFRIC)
International Financial Reporting Interpretations Committee (IFRIC)
Which of the following statements regarding companies are correct?
- (i) In most countries, companies only have to publish their accounts if it is in the public interest to do so.
- (ii) Companies usually have to retain their accounting records for a minimum period (often seven years) in case the authorities wish to verify information.
(ii) Companies usually have to retain their accounting records for a minimum period (often seven years) in case the authorities wish to verify information.
F Ltd’s managers have a poor attitude to internal controls and do not feel that they are important to their organisation.
Which component of internal control does this relate to?
- Information system
- Control environment
- Monitoring
- Control activities
Control environment
Question
A company is looking to raise new finance to launch a new product. It cannot decide between raising money through debt or equity. Which of the following statements regarding the two sources of finance is correct?
- Equity is typically cheaper to service than debt
- Equity can be secured on the company’s assets to reduce the cost
- Dividends to shareholders must be paid each year
- Interest payments on debt are tax deductable while dividend payments are not
Interest payments on debt are tax deductable while dividend payments are not
Which of the following is a typical feature of financial accounting?
- Predominantly for internal use
- Legally required by companies
- Both historical and forward-looking
- To aid planning, control and decision-making
Legally required by companies
Which of the following statements regarding internal and external audit is correct?
- Internal audit work is typically more flexible than that undertaken by external auditors
- Internal auditors are usually not employees of the company they audit
- An external audit is required by law for all organisations
- Internal audit concludes on whether the financial statements are true and fair
Internal audit work is typically more flexible than that undertaken by external auditors
Which of the following might indicate an increased risk of fraud or error within an organisation?
- Low numbers of unusual transactions
- Good staff morale
- Employees failing to take annual leave
- Simple corporate structure
Employees failing to take annual leave
F is a manager who expects his staff to follow his instructions simply because he is their manager. He says, ‘the company has put me in my position and that means that what I say is what staff need to do.’
What source of power is F using?
- Referent
- Legitimate
- Coercive
- Expert
Legitimate
Y’s manager has noticed that he is struggling to meet the objectives that he was set in his annual appraisal. The manager has discussed this with Y and the two have decided on a solution to get Y back on track.
What stage of the appraisal process is being described for Y?
- Review
- Action plan
- Monitor
- Set targets
Monitor
X has recently complained to the senior management of her company regarding poor treatment of some of her colleagues due to their ethnic background. X has been told by the senior management that this is none of her concern and that if she raises the issue again it will damage her career prospects within the company.
What type of discrimination is X being exposed to by her company?
- Positive
- Victimisation
- Indirect
- Direct
Victimisation
D is currently working within a project team. He generates many of the initial ideas that the group has used, though he is not very good at developing them.
According to Belbin, what team role has D filled?
- Plant
- Shaper
- Resource investigator
- Company worker
Plant
Plants generate the ‘seeds’ of new ideas!
A team is currently having difficulty in agreeing who will act as leader, which has lead to several arguments between team members.
According to Tuckman, at what stage of team development is this group?
- Performing
- Forming
- Norming
- Storming
Storming
Remember that ‘storming’ is the conflict stage
Maslow’s ‘hierarchy of needs’ suggests that all individuals progress through a number of different stages of motivation:
- Ego
- Basic
- Self-actualisation
- Social
- Security
What is the correct order for these stages?
2, 5, 4, 1, 3
basic
security
social
ego
self-actualisation
BSSES
Consider the following statements regarding motivation theories:
Which of these are correct?
- Vroom argued that an employee’s motivation was based on expectancy multiplied by application.
- According to McGregor, Theory Y employees need to be managed using an authoritarian style.
neither
E enjoys learning new theories before trying them out to see if they work in the real world. According to Honey and Mumford, what style of learning is used by E?
- Reflector
- Theorist
- Pragmatist
- Activist
Pragmatist
Kolb argued that learning is a cycle which has to begin at which of the following stages?
- Active experimentation
- Concrete experience
- Abstract conceptualisation
- None of the above
none of the above
Kolb suggested that learners could begin anywhere on the learning cycle. Note that the other stage is reflective observation.
What is the correcrt order of strategic planning?
- Strategic analysis
- Strategic choice
- Strategic implementation
When prioritising tasks which of the two are most important to be analysed?
- importance
- nature
- quality
- urgency
- importance
- ugency
What are Word processers, spreadsheets and databases collectively known as?
office automation
J is currently helping another member of staff deal with a number of problems that she is facing in her work and personal life. J is also offering her practical ongoing support with her job - in particular he is helping her with any technical problems she has.
What role/roles is J adopting with regards to the other member of staff?
he is Mentoring and Counselling her
mentors tend to provide ongoing practical help and support
A team of workers has been in conflict for serveral weeks as they cant decide who should act as the team leader. The team will only have to work together for a short period but the manager is aware that they have a tight deadline, meaning that they now need to agree on a leader very quickly.
which approach to managing conflict would be most appropriate?
Suppression
involves the manager exercising his power to force a settlement, is quick and short-term solution
