BUSINESS AND TECHNOLOGY PAPER F1 MOCK EXAM (7)

QUESTION 1

Is each of the following responsibilities included in the duties of a coach or a counsellor?

Coach Counsellor
Working with individuals to formulate plans to overcome personal
difficulties affecting their work

Assisting individuals to identify their personal strengths and develop

plans to capitalise one them

QUESTION 2
As John starts the audit of ABC Company, he tells a colleague that he is very short of money
Overhearing this, the finance director of ABC Company offers him a short term loan, on very
favourable terms.
Which of the principles from the IESBA (IFAC) Code of Ethics is threatened here?
A) Professional behaviour
B) Objectivity
C) Trust
QUESTION 3
The production manager of Xed Company, who reports to the operations director, has emailed
the human resources manager, who reports to the administration director, for assistance with a
matter concerning one of their team's contract of employment
This is an example of which type of communication?
A) Diagonal B) Vertical C) Horizontal
QUESTION 4

A manager seeks the views of an appraisee's colleagues, associates, clients, customers and
subordinates before making an assessment of his performance and effectiveness in the previous
quarter.

Which type of appraisal is being undertaken above?

A) 360 degree feedback

B) Upward appraisal
C) Multi person comparison
D) Peer review
QUESTION 5
Which of the following are general controls?
(1) Passwords required at login
(2) Security locks
(3) Sequential numbering
A) 2 and 3
B) 1 and 3
C) 1 and 2
QUESTION 6

Bob purchases 20% of Company A's output Company A is only one of many companies who
supply Bob. Bob always maintains a degree of competition between suppliers.

As far as Company A is concerned, how should Bob be categorised under Mendelow's

framework?

A) High power, high interest

B) High power, low interest
C) Low power, high interest
D) Low power, low interest

QUESTION 7

Different types of communication media have varying levels of information richness

Which communication medium has the highest level of information richness?

A) Face to face
B) Email
C) Memos
D) Telephone

QUESTION 8
In relation to cyber security, which TWO of the following may be consequences of a phishing
attack?

A) The victim's computer may be disabled by an overwhelming volume of data

B) The victim's personal data may be revealed to a criminal
C) The victim may be deceived that an email is from a legitimate organisation
D) Programs on the victim's computer may become inaccessible
QUESTION 9

If an ACCA member fails to comply with the fundamental principles of the IFAC Code of Ethics,
which of the following bodies should take action against him/her?

(1) IFAC
(2) ACCA

A) 1 only
B) 2 only
C) 1 and 2

QUESTION 10

Which TWO of the following are ADVANTAGES of off-the-shelf software packages?

A) Shorter lead time from purchase to installation

B) Precisely fits the needs of the organisation
C) Cheaper to buy than bespoke packages

QUESTION 11
Aqua Food Fishing Co operates a fleet of ships in the western oceans.

Which of the following are ADVANTAGES of sustainable fishing to shareholders in Aqua Food
Fishing Co?

(1) It will provide long-term benefits for future investors

(2) It provides good public relations for Aqua Food Fishing Co
(3) It increases profits in the short-term
(4) It increases business efficiency within the fleet

A) 2 and 3
B) 1 and 2
C) 1 and 4
D) 3 and 4

QUESTION 12

Which of the following is the CORRECT sequence of Honey and Mumford's variation on Kolb's
learning cycle?

A) Having an experience, planning the next steps, reviewing the experience and concluding from
the experience
B) Having an experience, reviewing the experience, concluding from the experience and planning
the next steps
C) Planning the next steps, reviewing the experience, having an experience and concluding from
the experience
D) Having an experience, planning the next steps, concluding from the experience and reviewing
the experience

QUESTION 13

Which of the following is an example of an inventory management process made possible

through the use of new technologies?

A) Just-in-Time (JIT)
B) Flexible Manufacturing Systems (FMS)

QUESTION 14

In Kolb's learning cycle, which stage immediately precedes the active experimentation stage?

A) Observation and reflection

B) Concrete experiences
C) Abstract conceptualization

QUESTION 15

Which of the following are money laundering offences?

(1) Failure to report fraud to the police

(2) Investing funds knowing they are criminal property
(3) Concealing the source of criminal property
(4) Accepting large amounts of cash from customers

A) 1, 2, 3 and 4
B) 2 and 3 only
C) 1 and 4 only
D) 1, 2 and 3 only

QUESTION 16

Why should ACCA members follow the Code of Ethics and Conduct?

(1) Failure to do so could lead to disciplinary action

(2) Failure to do so could lead to prosecution
(3) Failure to do so could damage the reputation of the accounting profession
(4) Failure to do so could lead to poor quality work

A) 1, 3 and 4 only C) 1 and 2 only

B) 2, 3 and 4 only D) 1, 2, 3 and 4
QUESTION 17

Julia is a partly qualified accountant who works for a small public service organisation. She is a
pleasant person and her immediate superior finds it easy to work with her. Some of Julia's
colleagues, however, are more difficult to deal with and her immediate superior finds it more
difficult to allocate work to them. As such he places more and more work demands on Julia.
Julia is now finding it difficult to keep up with the demands made upon her. She finds it difficult
to determine which work needs doing first. She has adopted an approach whereby she does the
work in the order in which it is given to her. At the moment she is overwhelmed with complaints
from both her internal customers and her immediate superior who are all demanding that she
responds to their work requests.

Which TWO barriers to effective time management are shown in the behaviour of Julia?

A) Lack of assertiveness
B) Inability to delegate
C) Poor motivation
D) Lack of work priortisation

QUESTION 18

Are the following key tasks of operational supervisors?

Yes No
Coordinating resources
Motivating employees

QUESTION 19

Which TWO of the following are considered to be the key stages of the recruitment and
selection process?

A) Drafting the person specification

B) Designing the induction programme
C) Selecting a suitable medium to advertise the vacancy
D) Salary negotiation

QUESTION 20

Which of the following is an example of a generic strategy outlined by Porter?

A) Quality control
B) Cost leadership
C) Customer focus
D) Resource efficiency
QUESTION 21
PQR Co is a company selling, installing and servicing air-conditioning units. Service customers are
charged a rate for each hour PQR Co staff spend at their premises

Which TWO of the following should be considered in determining the 'charge-out' rate per
hour?

A) Number of hours the job will take

B) Service staff overhead costs
C) Manufacturing cost of the air-conditioning units
D) Hourly wage

QUESTION 22
Which statement about management by committee is TRUE?

A) Decision-making is faster when people are working in a committee

B) Each committee member is personally responsible for all decisions agreed
C) Committees exist between meetings so they can react quickly to changes
D) A committee can do more work than individuals working in isolation

QUESTION 23
Which writer is MOST closely associated with differing national perspectives on culture?
A) Schein
B) Hofstede
C) Handy

QUESTION 24
Which of the following writers on management is associated with human relations theory?
A) Fayol
B) Mintzberg
C) Drucker
D) Mayo

QUESTION 25

Which of the following is a feature of a modular organisation?

A) Functions of the organisation are separated and organised independently
B) All production activities are offshored
C) Outsourcing decisions are based on whether activities are core or non-core
D) Key production stages are identified and then organised sequentially in-house
QUESTION 26

Tuckman developed a team development model

What is the fourth stage in Tuckman's team development model?

A) Norming

B) Adjourning

C) Performing

QUESTION 27

Riley and Malena are managers at SAWR Co Since a recent take over bid they have been seeking
to award themselves better terms and conditions of service and behaving in ways that are not
favourable to shareholders of the company

Which of the following theories describes the situation above?

A) Agency
B) Governance
C) Stewardship
D) Stakeholder
QUESTION 28

The external auditors of Crax Co disagree with the directors on a point arising from the recently
prepared financial statements. The point is significant and the external auditors are unable to
persuade the directors that changes to the financial statements need to be made.

What should the external auditors do in such a situation?

A) Invite the International Accounting Standards Board to arbitrate over the point at issue
B) Provide a modified audit report
C) Change the financial statements to deal with the contentious point
D) Refuse to provide an audit report

QUESTION 29

Which TWO of the following are features of an informal organisation?

A) Structure C) Spontaneity
B) Social networks D) Stability
QUESTION 30
Some journalists operating in the country of Urbania have been accused of illegally accessing the
mobile phone messages of celebrities and this was exposed in a television programme

Which of the following is demonstrated by this exposure?

A) Preventing fraudulent activity

B) Acting in the public interest
C) Preventing a come being committed
D) Enforcing political accountability

QUESTION 31
In a work situation, gifts and hospitality may be offered to accountants from the clients or
suppliers.

Which of the following ethical principles is at risk of being threatened when accepting modest
gifts and hospitality?

A) Professional competence
B) Objectivity
C) Professional behaviour
D) Integrity

QUESTION 32
What is the term given to a situation when an individual's behaviour changes in order to be
consistent with the group norm?

A) Conformity
B) Compliance
C) Obedience

QUESTION 33
An organisation is in a highly competitive market, where technology is changing rapidly. The
organisation is mainly run by technological experts and a high degree of co-ordination needs to
take place between teams and departments in order to achieve objectives and to maximise
flexibility.

Which of Handy's cultural stereotypes is MOST appropriate within the above organisation?

A) Existential culture B) Task culture C) Role culture

QUESTION 34
Do each of the following increase aggregate demand in the economy?
Yes No
Investment in capital goods
Savings

QUESTION 35
Organisations may be categorised as production orientated or marketing orientated

Which of the following is a financial consideration of a marketing manager in a business that

follows a marketing orientation?

A) Cost reduction achieved by minimising marketing expenditure

B) Revenue - achieved by increasing units sold at the lowest feasible price
C) Profit-achieved by maximising customer satisfaction

QUESTION 36
Which of the following is a clear benefit of information technology at work?

A) Higher job security

B) Greater opportunities for job enrichment
C) More flexible working arrangements

QUESTION 37
When a company suspects it has encountered a case of money laundering, informing which of the
following is NOT appropriate?
A) The regulatory authorities
B) Shareholders
C) Company board of directors
D) The suspected party

QUESTION 38

What is the MAIN purpose of an organisational code of ethics?

A) To specify the rules of etiquette in dealing with customers and suppliers

B) To guide moral behaviour in situations employees are likely to encounter in work

C) To identify charitable activities and causes supported by the organisation

D) To specify policies which apply to an organisation's operations

QUESTION 39

Rupert is a departmental manager He is concerned about rumours that he has heard through
informal channels relating to possible redundancies in his own department. The rumours are
untrue, but they are having an effect on productivity and staff morale

Which of the following is the MOST appropriate response?

A) Inform line manager of the rumours

B) Respond through the same informal channels
C) Issue a formal response explaining the true situation

QUESTION 40

What types of ineffective communication are described by the following?

System Misunderstanding Personality

Insufficient information shared due to distrust

between colleagues

Use of specialist jargon which the recipient is

unfamiliar with

QUESTION 41

Which of the following constitutes fraud?

(1) A purchasing manager accepting a gift from a new supplier to switch the company's
purchases to that new supplier
(2) A sales person not recording a cash sale and keeping the proceeds
(3) A credit controller extending credit to a customer who is later unable to pay

A) 2 only
B) 1 and 2
C) 3 only

QUESTION 42

What is the correct order in the communication process for the following elements?
 (1)Feedback

(2)Encoding

(3)Decoding

A) 1, 2, 3

B) 2, 1, 3

C) 2, 3, 1

QUESTION 43

Which of the following is TRUE about statements of profit or loss?

(1) They show the expenditure made in a past period

(2) They show the free cash generated in a period
(3) They are used to report financial position

A) 1 only B) 2 only C) 1 and 3 D) 1 and 2

QUESTION 44

Are the following statements true or false?

True False
If price falls, supply will increase (all other factors being held constant)
If price falls demand will increase (all other factors being held constant)

A) QUESTION 45
B)
Jane is a clerical assistant responsible for recording purchases and payments on a day-to-day
basis. She also prints a monthly budget report, showing budgeted and actual costs, together with
any variances.

Which TWO of the following systems will Jane use?

A) A decision support system

B) An executive information system
C) A management information system
D) A transaction processing system
QUESTION 46

Classify each of the following items using Schein's levels of culture.

Observable behaviour Values and Assumptions or

. and artifact Beliefs unspokenrules'

1) A uniform for front-line staff

2) The company logo
3) A commitment to customer satisfaction
4) An expectation to work long hours

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