Section A:

Question 1

What are finance functions for?

Answer 1

To enable, shape and narrate how

Question 2

How do finance enable?

Answer 2

Planning e.g. Budgeting
Forecasting
Resource Allocation

Question 3

How do finance shape?

Answer 3

Performance Management

Control e.g. Variance Analysis

Question 4

How do finance narrate how?

Answer 4

Financial Reporting

Question 5

What is a stakeholder?

Answer 5

A group or individual who has an interest in what the org does or the expectation of the org.

Question 6

What are the three types of stakeholders?

Answer 6

Internal
External
Connected

Question 7

What is an example of a internal stakeholder?

Answer 7

Employees
Managers
Directors

Question 8

What is an example of an external stakeholder?

Answer 8

Community
Government
Trade Unions
Competitors

Question 9

What is an example of a connected stakeholder?

Answer 9

Shareholders
Customers
Suppliers
Finance Providers

Question 10

According to Mendelow power interest what do you do with someone if they have low power and low interest?

Answer 10

Minimal Effort

Question 11

According to Mendelow power interest what do you do with someone if they have low power and high interest?

Answer 11

Keep Informed

Question 12

According to Mendelow power interest what do you do with someone if they have high power and low interest?

Answer 12

Keep Satisfied

Question 13

According to Mendelow power interest what do you do with someone if they have high power and high interest?

Answer 13

Key Players

Question 14

What is a tradionalists?

Answer 14

Thinks companies should operate solely to make money for shareholders and they shouldn’t worry about CSR.

Question 15

What should good CSR increase?

Answer 15

Revenue and Profibility

Question 16

What is an agency problem?

Answer 16

The directors run the company in their own interests, rather than those of the shareholders.

Question 17

What are some symptoms of poor corporate governance?

Answer 17

Domination of Board
Misleading finance statements
no involvement by board
lack of contact with shareholders
Lack of Supervision
Inadequate control functions
Short term profitability

Question 18

Where is the corporate governance best practice guidelines?

Answer 18

UK

Question 19

Where is the corporate governance a legal requirement?

Answer 19

US

Question 20

What is a non-executive director?

Answer 20

Only attend board meetings

Question 21

What are some must nots! for a non-executive director?

Answer 21

Be an employee last 5 years
Have close family ties with directors
Serve for more than 9 years

Question 22

Who must appoint people to board?

Answer 22

Nomination Committee

Question 23

Who decides on pay and incentives offered to directors?

Answer 23

Remuneration Committee

Question 24

What are the 4 I’s in ‘Information to Impact’?

Answer 24

Information
Insight
Influence
Impact

Question 25

What are the 5 A’s of ‘information to impact’?

Answer 25

Assemble
Analyse
Advise
Apply
Acumen

Question 26

What does assemble mean?

Answer 26

Collate Data

Question 27

What does analyse mean?

Answer 27

Provides insight

Question 28

What does advise mean?

Answer 28

Communicate Insight

Question 29

What does apply mean?

Answer 29

Support implement of decision

Question 30

What does acumen mean?

Answer 30

Connect activities together

Question 31

What are some examples of internal sources of data?

Answer 31

Sales Ledger
Purchase Ledger
Payroll System
Fixed Asset System

Question 32

What are some example of external sources of data?

Answer 32

Suppliers: Product Prices, Specification
Customers: Product requirements, Price sensitivity
Government: Taxation, Inflation Rates

Question 33

What must information be?

Answer 33

ACCURATE

Question 34

What does the acronym ACCURATE stand for?

Answer 34

Accurate
Cost
Complete
Understandable
Relevant
Adaptable
Timely
Easy to use