business ion and their stakeholders

8/3/2019 Business ion and Their Stakeholders

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BUSINESS ORGANISATION AND THEIR STAKEHOLDERS

1. Ahmed, Arshad and Wasif are starting a partnership business. Ahmed is a majorpartner having a partnership share of 70%. Ahmed is also the only partner bearing

unlimited liability for the debts of the partnership. Arshad and Wasif are thepartners with limited liability.

What kind of partnership arrangement is it?

a. Limited partnershipb. General partnershipc. Limited liability partnership

2. Jonathan is registering a company of which Jonathan is the sole investor. Mark afriend to Jonathan will be regularly paid commission by Jonathan.

Mark is likely to be;a. Investorb. Shareholderc. Underwriterd. Guarantor

3. Amir wants to form a public limited company. This will involve registering andfloating shares to the public. Amir does not want to list the company on the stock

exchange.

Is it possible to establish a public company without being listed on the stock

exchange?

a. Yesb. No

4.TAICHU is the CEO of CHUCHI Company. CHUCHI Company was in enough financialdifficulties when TAICHU joined the company. TAICHU created a culture of

innovation which brought the company to the blues. All the financial and

operational policies of the company depend upon TAICHU. Employees at CHUCHI

cant even imagine CHUCHI without TAICHU.

Which quadrant of Mendelows mapping should TAICHU be positioned?

a. Those who should be kept satisfiedb. Those who should be kept informedc. Those who are key playersd. Those who require minimal efforts

5. Steve is a supplier management officer at JBC. His job is to place order withsuppliers and manage those orders making sure orders are delivered on time and as


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per order. Steve is paid an hourly rate of 6/hour. He also provides admin.

consultancy to MARK LTD. Steve should be placed in which category by MARK LTD.?

a. Internal stakeholdersb. External stakeholdersc.

Connected stakeholders

6.REALITY LTD. is a company dealing in oil extraction and production of oil products.During the last month, an accident at REALITY LTD. brought a big environmental

contamination (poisonous chemicals mixed up with canal water). This brought

REALITY LTD. to the attention of many human rights organisations which are

publicizing REALITY LTD. as the Human enemies. Where should REALITY LTD.

position these organisations?

a. Those who should be kept satisfiedb. Those who should be kept informedc. Those who are key playersd. Those who require minimal efforts

7. To satisfy all the stakeholders seems an impossible target for any company. Oftenthe interests of stakeholders conflict with those of the others. At Johnson &

Johnson the CEO believes that satisfaction of the company shareholders is above

all. Which of the following stakeholders will be affected by this belief?

a. Employeesb. Customersc. Pressure groupsd. All of the abovee. None of the above

8.Jones is the sales manager. Jones has been working hard enough to increase thesales of the company. He trains his sales team regularly. Jones created a good

culture among the sales team to enforce his strategy for increasing sales.

Is Jones satisfied?

a. Yesb. No

9.Fred manufactures hardware for PCs. To increase his business he purchased 60%shares of SOFT PLC. previously a supplier of software to Fred. Since purchasing the

shares Fred has become company owner and counted in connected stakeholders of

the company. Last month Fred has sold all his shares to WAX PLC. Fred has wound

up his manufacturing business for PCs.

Fred now comes under which of the stakeholders?

a. Primary stakeholders


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b. Secondary stakeholders10.EFU purchased a significant number of shares in JET PLC a public company running

airline services and became its main investor. EFU needs to regrow the investment

of their customers therefore it purchased JET PLC shares.

What stakeholders should EFU be placed in?a. High power, high interestb. High power, low interestc. Low power, high interestd. Low power, low interest

BUSINESS ORGANISATION, STRUCTURE AND

STRATEGY

1. SMART TECH is a family owned Company. The company has its operations inComputers, Textile equipment and broadband services. The company is planning to

expand its operations in Germany by investing there in Laptop market. The

directors believe that Germany is the right target for the company as it has the

technological infrastructure and technological base available there. GRUSTURIDE is

identified by the directors as a possible acquisition target in Germany.

What level of strategy does the acquisition of GRUSTURIDE represent?a. Corporateb. Businessc. Operational

2.The CFO of CAT is to restructure the accounting function. The CFO needs a structurewhich enables to gather the experts and make their appointment easy and

effective. The CFO wants horizontal status with other departments

Which of the following structure is the most suitable for the accounting function?

a. Functional departmentationb. Geographical departmentationc. Customer departmentationd. Divisionalisation

3. SUSHI Plc. was initially started by Mr. Sushi as a producer of chemical detergents towash cloths. Mr. Sushi with his will to take the company to heights focused on the

internal market of Beijing and after that he focused on globalization of the


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company. Now SUSHI plc. operates in around 15 countries of the world with its

operations in chemical detergents, soaps and other chemical related washing

products.

Which organization structure is most suitable for SUSHI Plc.?

a.

Geographical departmentationb. Centralizationc. Divisionalisationd. Product focused lines

4.CRISIS Plc. is pushed by high costs. The managers are looking forward to reduce thenumber of employees without losing focus on quality. The manager production

needs a structure for his department which enables flexible employees having

greater responsibilities and having good understanding of customer needs.

Which structure is most suitable in this situation?

a. Centralizationb. Matrixc. Divisionald. Flat

5. THREE CIRCLES Plc. runs a catering and event management business. The companyhas traditionally been working wholly on its parts from running a kitchen to running

a team of 100 staff for the management of client events. The directors now wish to

minimize cost and they are looking for an organization structure that can enable

them to achieve their objective.

Which of the following structures is best suited for the directors goal?a. Chunked structure (staff will work in small teams to minimize costs)b. Project teams (every event will be taken as a project to be completed within cost,

time and quality objectives)

c. Flat organization (cutting the level of unwanted layers and thus enabling to savecosts)

d. Shamrock structure6.Jenny is appointed as a multi-purpose staff. Her job description involves the

following tasks;

i. Taking client ordersii. Communicating the orders to the crew

iii. Identifying technical requirements of the clientsiv. Correspondence with clients

Where is the right place for Jenny?


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a. Support staffb. Technostructurec. Operating core

7. Marcus built his team well. The team members have a very good informalcommunication with each other. For every task, the team first makes a meetingwhere all the working methods and procedures are decided by the team members.

They have been so much integrated with each other that all decisions they take are

based on consensus. Even a single decision where all team members do not agree is

not taken. Marcus sees this as team unity making sure team success in different

areas.

The team developed by Marcus has which of the following characteristics?

a. Team solidarityb. Understanding of each otherc. Unityd. Group think

8.PIERSONS Ltd. manufactures a range of products. The company is facing difficultiesin the management of these business areas. Control is lost many times. Directors

want to establish a structure which creates accountability for every product area.

The directors also wish that the company develop its reputation as the best

producers of the offered products.

Which of the following should the directors adopt?

a. Divisional structure (as it will help to separate the products where costs andrevenues can be effectively traced and tracked0

b. Product departmentationc. Strategic Business Units (SBUs) (to make sure each unit of the business is

working independently)

9.MAKRO is a large departmental store. The company is owned by a group of peoplewho define the business of the company and its vision. The suppliers who dump

their products in the departmental store are classified as;

a. Contingent workforceb. Contractorsc. Professional core

10.Microsoft is developing a strategy for X-BOX. The company faces a toughcompetition from its rival SONY which has a big brand name in manufacturing

gaming hardware. The launch of Sonys PlayStation 3 caused severe difficulties for

X-BOX. May users left X-BOX and moved to PlayStation.

Microsofts strategy for X-BOX is an example of;


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a. Business strategyb. Corporate strategyc. Functional strategy

CONTROL, SECURITY AND AUDIT

1. RINGER LTD. runs call center for telecommunication companies. RINGER LTD. has ahuge internal audit department which has established hundreds of internal controls

in finance, customer relations, supplier management and administration areas.

Despite these controls staff is observed coming late, going early, not focusing on

their targets, appraisal happening for no use.

What is lacking in the internal control system of RINGER LTD?a. Internal checksb. Control testsc. Controls follow upd. Control environment

2.ROBERT Phillips maintains high controls in the finance department. These controlsinclude;

i. Maintaining proper invoicesii. Disciplined documentation

iii. A risk registeriv. A risk manager

What kind of controls do the above relate?

a. Financial controlsb. Accounting controlsc. Qualitative non-financial controlsd. Qualitative financial controls

3. JULIE is asked by her coordinator to investigate a theft of 1500 dollars from theoffice petty cash box. JULIE in her investigation finds a chit labeling theft for

good. When physical check, Julie found that the petty cash box was in bad repairs.

Someone broke the lock by a screw gauge.

The above situation reflects weak;

A. Personnel controlB. Locks and passwords


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C. Accounting controlsD. Administration controls

4.Arthur Anderson in their audit at Enron did their job with dishonesty. Bribed bydirectors, Anderson were found guilty of giving wrong opinion on the company

financial statements. They were involved in the hiding of directors frauds.Which of the following might be a possible cause of Andersons behavior?

a. Weak internal controls at Enronb. Low quality firm wide proceduresc. Weak internal control environmentd. Unprofessional audit team

5. ATKINSON is the head internal auditor of XYZ Corporation. Atkinson is directed bymanagement to conduct an audit in the purchasing department. Directors are of the

view that from the last 2 months purchases have not been effective. Low quality

inventory was purchased for high price, labor is paid a fixed salary whereas numberof hours worked is decreasing day by day.

What type of internal audit is required to address the above circumstances?

a. Systems auditb. Transactions auditc. Probity auditd. Administrative audit

6.PWC is on audit of STANDARD CHARTERED BANK. Pushed by the banksmanagement to carry out audit activities early, the auditors have decided to put

their reliance on the work of internal auditor as it will enable them to carry out less

detailed audit procedures.

Which of the following factors should not be accounted for when putting reliance

on the work of internal audit department?

a. Scope of internal auditb. Number of internal audit staffc. Due professional cared. Organizational status

7. A computer system was hacked by an intruder over the network. The hacker gotaccess into the back end programming of a tax software. The software is now

producing reports based on incorrect calculations. This was observed by the

companys tax manager in a discussion over a report with the tax junior.

What is likely to be the problem?

a. Systems integrityb. Data integrity


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c. Weak internal controlsd. Lack of software security

8.An inventory module is designed to take input of inventory purchased. COLLINS istrying to input the purchase of inventory amounting to $1000. Every time he clicks

the OK button, a message is displayed Invalid input. Please enter an amount up to$905

Which of the following controls is it?

a. Range checkb. Total controlc. Input controld. Limit control

9.NIB BANK is having enough security threats over its network of branches. It isanticipated that a group of hackers is constantly trying to hack into the internal

network of the bank. The director of information technology has decided toprepare a disaster recovery plan to get ready for the attacks of hackers.

Which of the following elements of disaster recovery plan must be carefully

planned by the bank?

a. Contingency planb. Staff responsibility planc. Backup plan to minimize disruptiond. Securing the main network areas

10.The internal auditors at ASTON MARTIN are busy in checking the transactions indetails to find a fraud involving the misappropriation of $20 million. The head

internal auditor directed the team to check every individual transaction, record, file

in detail to find the culprit.

This audit is;

a. Management investigationsb. Operational auditc. Systems auditd. Probity audit


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CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY

1. Mr. Thomson runs a successful company THOMSON & THOMSON. The company isowned by the family of Mr. Thomson. Thomson and his 4 sons sit in the BODs of the

company. Recently a friend of Thomsons son is given shareholding in the companyand made a director

Would there be an agency problem?

a. Yesb. No

2.Farhan is the executive director of SEAFOODS Plc. running a chain of retail storesselling frozen sea food. Farhan has a wide experience in his field of performance.

Farhan is given an opportunity to become a non-executive director in two

companies

i. FRESH FARM FOODS (running a chain of retail stores selling dairyproducts)

ii. OCEAN BEANS (running a chain of retail stores selling frozen, friedand grilled sea food)

Which offer can Farhan accept?

a. ib. ii

3. Mr. Samson is a loyal executive director of a company. He has been serving as CEOof the company for the last 3 years. At the end of the recent year, Mr. Samson

retired from the position of CEO. The BODs seeing his loyalty and super capabilities

does not want to lose them. The board has given him an opportunity to be the

chairman of the board.

Does good corporate governance practices allow this?

a. Yesb. No

4.Mr. FUJITSU is the CEO of MALTA Plc. The company picks fresh oranges, pineapples,apples, cherries, strawberries, mangoes, guava and other fruits from farms andprepares juices, cakes and other soft drinks. Mr. Fujitsu recently purchased 20% of

the company shares.

What Mr. Fujitsu should do regarding this purchase?

a. Tell the BODs and the NEDs about the purchase (to maintain his integrity)b. Return the company shares (as this creates a conflict of interest)c. Keep the shares and tell it to no one (as it is the right of Mr. Fujitsu)


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d. Tell the Non-executive directors (to bring this to the attention of the companyshareholders)

5. A committee is formed in a company the brief of which is to;i. Review the internal control system

ii. Review the procedures to manage riskiii. To perform management investigations

What should be the title of the committee?

a. Risk management committeeb. Audit committeec. Committee of NEDs

6.Audrina serves as the NED of a particular company. She is doing her job with theutmost loyalty and sincerity. Audrina purchased a high amount of company

shareholdings to ensure she is in the shareholders of the company for proper

monitoring of executive directors activities. She said in a general meeting with

shareholders As I know the hides and seeks of the company, the shareholder party

should grant me automatic reappointment as NED and also I would request

shareholders to give me a long period of appointment so that I can do my job to the

highest standard

Should the shareholders allow what Audrina has requested?

a. Yesb. No

7. The executive directors of a company are offered the following remuneration;i. 40% fixed salary

ii. 40% performance basediii. 20% if achieve the goals in social and environmental areas

The performance bonuses are based on company profitability, number of products

offered, number of employees appointed, cost minimization and others.

The above remuneration package is an example of;

a. Stewardship theory (as directors are pushed to work hard and increase theshareholders wealth)

b. Agency theory (as directors are pushed to work hard and bribed by their ownbenefits)

c. Stakeholders theory (as the directors are pushed to work hard for social andenvironmental causes)


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8.The shareholders of a company believe that the presence of non-executive directorson the board will enable them to keep an eye on executive directors. Also the NEDs

will enable a wide perspective to EDs.

When appointing NEDs, the shareholders should seek opinion from;

a. EDsb. Market surveys (containing reports about NEDs working in other companies)c. Market reportsd. Experience basis

9.A survey was conducted by a firm of auditors of EASY Ltd. The survey revealed thefollowing facts;

i. The company is run by Mr. Fresco as CEOii. Mr. Fresco owns a number of company shares

iii. There is only one board of directors consisting of executivesiv. Mr. Fresco is not in favor of the appointment of NEDs as he believes

that the company is in crisis and presence of NEDs will lead to other

administrative work distracting the executives from working their

targets

v. The sales teams are given individual targets to achievevi. Mr. Fresco also runs another company FRESCO Ltd.

Do the above mentioned facts indicate good corporate governance?

a. Yesb. No


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10.JDAM Plc. manufactures chemicals. The company was formed during the SecondWorld War by Mr. JUDITH. Since then the company has been producing chemicals

for hand grenades, air bombs, tanks and other explosives. The company initially

started its operations in Germany making contracts with NAZI forces and

somewhere with German government. After Second World War, the company

moved to US, producing explosives for the US army. Now in 2011, the company has

its official contracts with the following countries;

i. Germanyii. England

iii. USiv. Francev. Israel

vi. Italyvii. Russia

The company has established production installments in the remote areas of these

countries where new explosives are researched, developed and tested by the

company experts. Sometimes the production of these chemicals causes hard

damage to environment. The company keeps social responsibility at its heart which

was shown by the COO in his speech We aim to safeguard countries by producing

defensive equipment rather using these weapons against the countrymen.

The company has different social attitudes in these countries. In France, the

company operations have not been very profitable. The directors now intend to

safeguard the environment with the most necessary anti-environmental damage

resources. The plans are to limit the production facilities and making provisions for

refurbishing them when their useful lives are wasted. In England, the directors

intend to accommodate social responsibility when asked by the government

although the most necessary steps are must taken

What is the strategy of the company in France and England?

a. Reactive in England, Accommodation in Franceb. Defense in France, Accommodation in Englandc. Proactive in France, Accommodation in Englandd. Reactive in England, Defense in France


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DIVERSITY AND EQUAL OPPORTUNITIES

1. Josh has four subordinates JIM, TIM, SID AND SANDY. Sandy is Joshs favorite.Whenever Josh appraises the performances of the four, he keeps the test same butassesses Sandy in a polite and flexible manner.

What kind of discrimination is it?

a. Directb. Indirectc. Harassment

2.Saima works in the credit card division of BANK ALFALAH. She is the only femaleworker in the office. Being alone female, she has to face many things including

staring by men, cruel laughter on her work and sometimes jokes on women.

What is happening with Saima?

a. Direct discriminationb. Indirect discriminationc. Harassmentd. Victimization

3. SID was not given promotion by his manager. Sid believes that he was the idealcandidate for promotion which was given to another fellow by the manager. When

Sid went to the manager, he told Sid to keep quiet if he likes to keep his job with

him.

What happened to Sid?

a. Direct discriminationb. Indirect discriminationc. Harassmentd. Victimization

4.JUPITER Ltd. advertised for the appointment of a COO (Chief Operating Officer)The candidate should be at least 45 years of age with 6 years of experience

What kind of discrimination is it?

a. Direct discriminationb. Indirect discriminationc. Direct discrimination partiald. Indirect discrimination partial


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5. Mr. SWAN is an administrator in a call center. Mr. Swan is alleged of having badgestures in the office. The allegations on him involve;

i. Putting hands on shoulder of female coordinatorsii. Talking with female coordinators for long

iii. Chasing them in the office etc.What kind of activity is Mr. Swan involved in?

a. Harassmentb. Victimizationc. Indirect discriminationd. Sexual discrimination

6.ABC Company told its recruitment consultant to appoint those candidates mostlywho are Oxford graduates. The company believes in quality. Therefore it gives

preference to Oxford graduates as they have the highest level of education and

skills.

Is the company policy discriminatory?

a. Yesb. No

7. A government organization offers recruitment opportunities on a fair basis. As abenefit to employees, the family members of the employees are first given

preference for appointment in place of their retiring family members.

Is the policy discriminatory?

a. Yesb. No

8.FABRIQUES is a textile company based in AFRICA. The company employs peoplefrom all over the world with different cultures, different educational backgrounds,

and different capabilities. The company has a workforce of 1000 people which is the

most highly diversified among all similar companies.

To manage diversity in the workforce what should FABRIQUES do?

a. Appoint a diversity managerb. Train the employees in diversity managementc. Appoint career managers

9.According to Pakistani officials policy, the prime minister and the president ofPakistan must be Muslims. Many capable people for the two positions are given no

opportunity due to them being Non-Muslims.

Is the officials policy fair?


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a. Yesb. No

10.Microsoft has a policy to produce its main products Windows and Office indifferent languages for some countries such as China. Other countries such as

Pakistan and India are given the standard version of the two products despite theirnational languages being other than English.

Is Microsoft ethical and non-discriminatory?

a. Yesb. No

Ethical considerations

1. You are an audit junior. In your work at Quick Speed plc, you observed somereceipts missing. When investigated you found that Clive Xu, a cashier at Quick

Speed plc has theft these receipts. When investigated further you found that Clives

action was motivated by the need of her daughter being hospitalized needing an

operation. Clive theft the amount so that he can save the life of his daughter. You

feel yourself in a strong duty to communicate this matter to your senior. Which

ethical approach you are likely following?

a. Deontological approachb. Teleological approachc. Egoism

2.You are the tax clerk in SBP corporation. While carrying a review of the tax paperfor the recent years you see that SBP corporation has been misleading the tax

authorities by under-recording its sales figures. Also the company has few

operations which are taxable but not shown on the tax records. You feel your

strong duty to inform tax authorities about this issue but due the threat of the

dismissal from the job you have not been doing this. If you inform tax authorities

about this situation, what it will be considered?

a. Loyalty to the companyb. Whistle blowingc. Dishonest employee

3. Johny depp has two business options. One option will give Johny lots of money forhimself but it is harmful for the society. The second option will give enough benefit

for society but little to Johny. Which option is Johny likely to choose when

following Teleological approach?


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a. 1st optionb. 2nd optionc. Both optionsd. None of the above

4. A doctor during operation of one of his patients removes one kidney and sells it forhuge amount to a corrupt dealer. Which two of the following duties is the doctor inbreach of?

a. Fiduciary dutiesb. Duty being a doctorc. Duty of faithful serviced. Duty to the hospital

5. Amy in his selection interview to BECKS plc tells that she has completed and passedall her ACCA papers in first attempt. However two papers took Amy three attempts

to pass. Being an ACCA member, which of the following ethical code is Amy inbreach with?

a. Integrityb. Objectivityc. Professional competence and due cared. Confidentiality

6.Katara who is an ACCA member has not been filling his CPD (continuingprofessional development) records with ACCA. It is doubted that Katara is not

updating her knowledge and skills. While providing accountancy service to her

employer, Katara is in breach of which of the following ACCA code of ethics and

conduct?

a. Integrityb. Professional behaviorc. Objectivityd. None of the above

7. Shao Dre is thinking to establish a Kung Fu centre in Beijing China. The centre willbe training students in traditional and modern approaches to Kung Fu. Shao Dre has

listened enough about ethics from her friends and is confused about which ethical

approach she should establish at the centre. Which of the following approach

should Shao Dre adopt?

a. Ethics based on rulesb. Ethics based on principles

8.Mr. Kong has been providing gifts to Mr. Benz. Some of the gifts contain a newmodel of the Audi car, a Titan watch and Cigars from Cuba. Mr. Benz is a


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government official responsible for granting licenses to explore oil resources in the

country and draining out wastage in the seas of south California. Mr. Kong has been

renowned for the smuggling of killing acids and wasting them in the seas. From the

situation above which of the following is Mr. Kong seen as doing to Mr. Benz

a.

Grease moneyb. Briberyc. License feed. All of the above

9.Alice is the chief accountant at Frozen Corporation, a firm dealing in Frozen foods.James is the Food manager in the same company responsible for food quality. Who

of the two has social responsibility for their works?

a. Aliceb. Jamesc. Alice and James both

10.You are an audit senior at PROFESSIONAL ACCOUNTANTS audit firm. You are on theaudit of a bank. After day, on your way to home you received a call from Miss

Elizabeth asking you to provide some information about the bank you are on audit

of. You denied providing information. When home, you again receive call from

Elizabeth who persuades you to meet her at a high class wine bar in the society.

Elizabeth shares a drink with you and gives you a signed check of 50000. Bribed by

the check you revealed the business plan of the bank to Elizabeth. Elizabeth gives

smile and moves out of the bar. Which ACCA code of ethics and conduct you are in

breach with?a. Professional behaviorb. Due carec. Integrityd. confidentiality


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IDENTIFYING AND PREVENTING FRAUDS

1. JOHNY works in the sales ledger area of a company. Johny often pockets cash fromcompany cash account. Johny heard about manager coming for a control visit. Tosave himself Johny misappropriated the accounts. He took cash from the account of

X and put it in that of Y to show that X has paid his invoices which in actual was

pocketed by Johny.

Which of the following frauds is it?

a. Meeting budgetsb. Teeming and ladingc. Misappropriation of accountsd. Collusion with customers

2.There is no NED in XYZ Corporation. The directors of the company are remuneratedhalf fixed and half based on the performance of the company. For the year ended

31st December 2010, the profitability target was not achieved. The directors are

afraid to lose their performance bonuses. To ensure that the bonuses are not lost

the directors have decided to drag the sales from January 2011 to December 2010 in

good faith.

Is the above a fraud by directors?

a. Yesb. No

3. JUBILEE Ltd. has diversified its operations in UGANDA, PARAGUAY, ITALY, JAPANAND CHINA. The company has a reputation of strong internal control system. Its

operations are highly monitored by a huge internal audit department throughout.

The head internal auditor is highly recognized official.

The diversified operations bring which threat to the company?

a. Internal threat of fraudsb. External threat of frauds

4.BANK ALFALAH is facing a number of credit card defaults. The bank before issuingcards to customers performs detailed investigations. These include;

i. Investigating the personal details with police recordsii. Investigating the salary and job status with employers

iii. Physical inspection of the documents providediv. Informal investigation of the person


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Despite all these investigations, the bank is unable to obtain a 100% effective, loyal

and paying customers.

The defaults by customers should be classified in which of the following category?

a. Internal factorsb. External factors

5. FENDER LTD. is facing the following risks of fraud;i. FENDER LTD. having profit blues

ii. Rising petrol pricesiii. A huge workforceiv. A very diversified organization structurev. Staff dissatisfaction due to killing of their last years bonuses

vi. Managers having enough freedom to operatevii. Rumors about the possible bankruptcy of the company

Which of the above risks cant be classified as business risk?

a. ii, ivb. ic. i, iiid. None of the above

6.The management at WALLMART is deciding to automate their operations. It wantsto develop an interactive intranet that will enable company employees to

communicate with each other throughout, reconcile their performances and share

knowledge and information.

Which of the following risks would the company intranet bring?

a. Opportunities of fraud for the company employeesb. Misuse of WALLMART informationc. Internal risks of fraudd. Employees with high computer knowledge might deceive management

7. PWC is on audit of CADBURRY LTD. During their audit, the auditors found that thefinance manager in one of the company product divisions is engaged in the

misappropriation of company accounts. The auditors also found that;

i. The inventory record is not evidencedii. Sales are increasing, while the GP ratio is decreasing no proper

evidence given

iii. The company invested in many investment properties which are notproperly recorded as per the IFRSs


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iv. The company discontinued its operations in MILKY BAR which isimproperly classified as a Non-Current asset

v. The salaries of directors as shown in accounts does not reflect theirpercentages of bonuses and how they are earned

Before publicizing these frauds in their report, PWC should communicate these

frauds with whom of the following?

a. The directorsb. The Non-Executive Directorsc. Audit committeed. Shareholders

8.Han is the CEO of PEEKS Ltd. He also owns a small number of shares in MARS Ltd. on31st May 2011, the BOD of Han Ltd. decided to take over MARS Ltd. Before the

decision was publicized, Han purchased a significant shareholding in MARS Ltd.which is unknown to the BOD of PEEKS Ltd. Han purchased the shareholding

through his friend Mickey who actually purchased the shareholding for Han.

Who would be considered as the culprit in this insider dealing fraud?

a. Hanb. Mickeyc. Han and Mickey

9.Moly is the finance director of a company. Moly misappropriated the accountswhich resulted in a personal gain for Moly of 1 million. Moly is feared of showing

this amount in her bank account so she decided to rollover the money. She hasdecided to invest this amount in a casino from where she intends to earn double of

the amount and hide the original source.

The investment of Moly in the casino is an example of;

a. Launderingb. Layeringc. Tipping offd. Integration

10.WALLS, as a promotional event allocated 10 pieces of its famous Fiest to be givento the customers as gift. Every sales person is given a target of selling 100 pieces

and on every 10 pieces, the company gives 1 piece as a gift. Azhar sold the hundred

pieces but despite giving gifts to customers, he sold the 10 pieces to a shopkeeper

and pocketed the money.

What fraud Azhar did?

a. Collusion with customers


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b. Misuse of company assetsc. Meeting targetsd. Bogus supply of goods

Individuals, Groups & Teams

1. Y and Z work in ChunChinChan plc. Y is an administrator and Z is a salesrepresentative. Y is an extrovert personality whereas Z is an introvert. Mr.

ChuChinMa who is the CEO of the company is unhappy with the performance of Y

and Z. This performance problem is likely to be caused by;

a. Different job responsibilitiesb. Less effective managerial style of Mr. ChuChinMac. Personalities not compatible with the tasksd. Ineffective working method

2.Mark and Zuko work in a textile factory. Mark is production supervisor and Zuko istechnical supervisor. Iroh joined them as Production incharge. All of them are of the

same age group and have developed good understanding among each other. They

go to lunch together, have tea together and have developed a theme of perfection

i.e. work hard go fast.

This theme if considered in the scenario of group dynamics means;

a. Group normsb. Group conformityc. Group cohesiond. Group think

3. At Victoria softwares ltd, some people are being collected for a project team. Theteam manager Mr. Wilson has identified nine team members who are

programmers, animators, database handler etc. These nine members do not know

each other and have feeling of hiding expressions. This team will be working on a

software project for a large multi-national group.Which of the Tuckmans stages the team is in right now?

a. Formingb. Normingc. Stormingd. Performing


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4.Cindy stalkford is a member of a production team at the Food for love restaurant.The restaurant is a customized one. Customers call at the restaurant and dictate to

the operator the food which they want to prepare for their loved ones. The

restaurant guarantees a 2 hour food manufacturing and delivery service. Sometimes

it becomes hard for the team to prepare the desired food by customer. In suchsituation Cindy often finds the way to prepare the food and gives solutions which

normally the other members of the team do not propose. Which of the Belbins

team roles does Cindy Stalkford plays?

a. Shaperb. Resource investigatorc. Plantd. Leader

5. Alfred Johnson is a member of a sales team at Gifts 4 U company. The companyprepares gifts items for the customers. There are two production lines. One wheregifts are made as per the policy and schedule of the company. Second where the

gifts are made on the order of the customers. The company has a reputation of

customer care. Alfred looks after the overall manufacturing of gifts with a keen eye

of criticism. He also proposes new ideas to the team. Which of the Belbins team

roles is Alfred playing?

a. Completerb. Monitor-evaluatorc. Team workerd. Specialist

6.At Nikita Corporation, the company is about to launch a new product. The vision isto create a hair conditioner that guarantees hair growth and thickness within 25

days. For this the company has developed a team consisting of four team members.

Each team member belongs to a different discipline and has expert knowledge in

that area. Which of the following types of the team does this team represent?

a. Multi-disciplinaryb. Multi-skilledc. Virtuald. Self-managed

7. A particular team leader is giving a speech to his team members. During the speech,the leader emphasizes that the team members must be loyal to the team and no

team member should try to out perform by pulling the legs of the other team

members. The leader continues we are one team and we have to work selfless for

the tem


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What the team member is emphasizing in the team?

a. Team identityb. Team solidarityc. Team objectives

8.Mr. Gibson and his wife work in an office. Mr. Gibson is the sales director whereashis wife is sales manager. On Monday morning, when Mr. Gibson entered the office,

all staff members including his wife said Good morning Sir

Which of the following is reflected by the conduct of the staff members?

a. Role setb. Role ambiguityc. Organization structured. Formal behavior

9.Miss. Chilli Milli is a highly sociable supervisor in the production department ofFast Foods at your door. She has developed a good informal relation with other

of her staff. Li Jones, one of the production staff member has been showing poor

discipline on his part. Miss. Chilli Milli has a special informal relation as a friend with

Li Jones and now is confused how to remand Li Jones

Which of the following is valid for Miss. Chilli Milli?

a. Role setb. Role ambiguityc.

Role conflict

d. Role signs10.La Juciano is a manufacturer of fruit juices. One of its products La Energiano is an

energy drink. The company makes an advertise in which the celebrity after drinking

the product jumps from a mountain, grabs the flying eagle and comes down to

earth.

Which of the following the company wants to affect most?

a. Attitude of the public towards the productb. Awareness of the public towards the productc. Perception of the public towards the productd. Get the people like the product


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Leading and managing people

1. Twedle Aitkinsen is a manager at HARBOUR plc. He has the following powersi. To increment the salaries of his employees

ii. To order the subordinates for the workiii. Can assign subordinates for workiv. To disrupt the activities at HARBOUR plc by turning employees

against the company

Which of the above is not the authority of Twedle Aitkinsen?

a. ib. iic. iiid. iv

2.Susan is a manager in the HR department of a company. She is quite extrovert andspends most of her time listening to people and chatting with them. An assignment

has been pending by Susan for more than a week. During the last week, Susan was

seen hanging out with colleagues and when asked about the assignment she said

she would be completing soon. Which of the following leadership style is reflected

by Susans behavior?

a. Impoverishedb. Country clubc. Middle of the roadd. Team

3. Mr. Han communicates with his subordinates frequently. He cares for them andlistens to their advices. Also Mr. Han maintains informal relations with his

subordinates and sometimes prefers informal communication over formal one.

Which of the following leadership style is adopted by Mr. Han?

a. PDMb. PCMc. Delegatingd. Tells

4.Monarch plc has the following characteristics in its culturei. Strict observance of rules

ii. Strong emphasis on systemiii. People should surrender against organizationiv. Financial incentives as the source of motivation for the staff


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v. Scientific design of the managers jobWhich of the following management approach is adopted by Monarch plc?

a. Scientific managementb. Huaman relations approachc. Neo-human relations approachd. Modern approach

5. A particular chief executive officer of a company during his speech to the managerstells that managers have a strong duty for planning, controlling, organizing the

work, commanding people and coordinating between organizational parts. Which

of the following is the chief executive officer following?

a. Functions of management by Henri Fayolb. Functions of manager by Peter Druckerc. None of the above

6.A seminar of doctors is being organized by the national association of physicians. Allhospitals are invited to participate in the seminar. Mr. Mansoor Ahmed Khan has

been elected by his hospital to represent in the seminar. Which of the following

Mintzbergmanagerial roles Mr. Mansoor Ahmed Khan will be playing while

representing the hospital in the seminar?

a. Presenterb. Liaisonc. Figureheadd. Spokesperson

7. Jason is the MD of MegaCorps. He is reviewing some analysis prepared by thefinancial manager about investing in projects. Jason has to take decision as to which

project the company should go with. While taking the decision, which of the

managerial roles by Mintzberg is Jason playing?

a. Leaderb. Figureheadc. Entrepreneurd. Resource allocator

8.Two teams are formed at RESEARCH plc. One time is lead by a manager withfollowing characteristics

i. Strong authority exercised by the managerii. Manager telling the team what to do and expecting the team to do

iii. No question of any team member is answered by the team membersThe second team is lead by a manager with the following characteristics


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I. Little authority exercised by the managerII. Subordinates being involved in decisions

III. Constructive criticism being implement in the managerial decisionsWhich leadership style is reflected by the team managers?

a.

1

st

team tells style, 2

nd

team sells styleb. 1st team consults style, 2nd team joins stylec. 1st team joins style, 2nd team consults styled. 1st team tells style, 2nd team consults style

9.Camilla is the sales director of Joyful ltd. She has been working with hersubordinates in a caring and loving way. She has a strong feeling that her

subordinates recognize her as her leader. Which of the following by Heifetz will

lead you to consider Camilla as a leader not only as a manager

a. Her position in the organizationb. Her job descriptionc. Her use of power with subordinates

10.Osmosis plc has been operating a water purifying plant. The company purifieswater and sells it to the customers. Mendleve has joined the company as a

distribution manager. Mendleve has in his team Tony, Mori and Cindy. These three

staff members have different needs and different patterns of operating. Mendleve

has been in big trouble smoothing over things between them. Being a good leader

Mendleeve should consider the whole situation when adapting a leadership style.

Which of the following factors constitute a situation according to John Adair?

i. Needs of the individualii. Needs of the task

iii. Needs of the groupiv. Relationship between manager and subordinates

a. i and iib. ii and iiic. iv onlyd. i, ii and iii


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Motivation

1. Polytech Corporation has a reputation of building its employees, grooming themand giving them the right incentives for motivation. The company strongly believes

that employees are the most important resource of the company and must be

motivated to get higher performance. Which of the following approaches to

management is the company likely adopted?

a. Human relations approachb. Classical approach to managementc. Neo-human relations approach

2.A particular employee is appointed by a company. After selection, the employee istold about the following in an interview with the HR manager

i. Your agreement with the company which is currently probationarywill be permanent in 6 months based on your performance

ii. If the performance remains standard till 1 year, you will be given a100% increment in your salary

iii. If the performance remains standard for another 1 year, you will begiven with a company maintained flat

iv. Based on 2.5 years standard performance, you will be made thedepartmental manger

Which of the following is being provided to employees?

a. Rewardb. Incentivesc. None of the above

3. A particular manager in a meeting communicates to the employees that if they arenot on time for 3 consecutive days, a 25% amount will be deducted from their salary.

Going further the manager says if you become late for the fourth consecutive day, it

will result in the loss of your jobs. Which of the following approach to motivation is

adopted by the manager

a. Positive motivationb. Negative motivation

4.A company organizes communication networks between employees. Suchnetworks include employees workshops where employees meet and discuss on


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work-related issues. In addition to work-related issues, they are also encouraged to

have informal communication with them. Also the company organizes an annual

dinner which is a part of this communication network.

Which of the following needs of Maslows hierarchy is likely to be satisfied by the

communication networks?

a. Psychological needsb. Security needsc. Ego needsd. Social needs

5. Employees at Mia Mia ltd are given the following job rewardsi. A fixed salary

ii. A fixed bonus each yearWhich of the following needs is the salary package likely to satisfy?

a. Social needsb. Ego needsc. Self-actualization needsd. Basic needs

6.Silly Nadia is given the following rewards by her employer SENSATIONAL plc.i. A basic salary

ii. A responsible jobiii. Company cariv. Company flat

Which of the above is an intrinsic reward?

a. Basic salaryb. Responsible jobc. Company card. Company flat

7.

Fujitsu ltd provides its employees with the following job related factorsi. Salaries

ii. Good HR policiesiii. Good growth opportunitiesiv. Better physical working conditions


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Which of the above mentioned factors constitute motivation factors as identified by

Herzberg?

a. i onlyb. ii and iiic.

i, ii & iv

d. iii only8.Ching Hong is working in a restaurant as an accounts officer. Ching Hong knows

that while working in the restaurant he will be earning more money with flexible

timings. Ching Hong has preference for accounts experience and believes that

Quiqui restaurant can not provide him with his desired experience in audit, tax,

payroll etc. while working at the restaurant which of the following is true about

Ching Hong?

a. Valence is high, expectancy is highb. Valence is low, expectancy is highc. Valence is low, expectancy is highd. Expectancy is low, valence is high

9.Mr. Tushimama is the administrator of The forbidden city in China. Tushimama isresponsible for the repairs, maintenance, cleaning and decorating of the forbidden

city. He holds regular meetings with his staff in which the staff members are

allowed to participate in the above mentioned matters. Few of the staff members

have a feeling that Tushimama asks them for their advices but never implements

them in his decisions. Considering the staff members true which of the following

characteristic of good participation is missing?a. Consistencyb. Certaintyc. Clarityd. Commitment

10.Flora has been called by her manger. The manager tells Flora that she has gotpromotion in her job. From now on, she will be given more authority over her

subordinates and will regularly be involved in decisions regarding department. She

will also be given freedom in her work as to how it should be planned and

performedWhich of the following has Floras manager adopted?

a. Job rotationb. Job enlargementc. Job enrichment


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Influences on organisational culture

1. Monte Carlos works in Flyfal, a public limited company. Flyfal plc operates as amarketing consultant for other companies. It also provides event management

services. In Flyfal plc, employees are paid according to the business they introduce

into the company. Every month a big amount is paid to the employee who achieves

more business for the company. Recently Monte Carlos won 1000 as reward for

introducing a huge marketing campaign to Flyfal plc.

Which of the following cultures is seen adapted by Flyfal plc?

a. Power cultureb. Role culturec. Task cultured. People culture

2. Jack, Jensen and Judi are friends. Jack and Jensen work in Fashionable plc as salesrepresentatives. Judi works in a restaurant. Fashionable plc makes a contract with

the restaurant in which Judi works to provide daily lunch for its staff. Which of the

following is an external stakeholder for Fashionable plc

a. Jackb. Judic. Jensen

3. Transformers plc has structured itself in the following manneri. Strict organisation structure

ii. Strict authorization and approval proceduresiii. Proper work schedulesiv. Formal disciplinary procedures

Which of the following of the Hofstedes cultural types is seen in Transformers plc?

a. High power distanceb. Low uncertainty avoidance


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c. High uncertainty avoidanced. High masculinity

4.Edward bought a number of shareholdings in J J Johnson ltd. Edward has the powerto contribute in management decisions of JJ Johnson ltd. Due to the large amount

of shareholding owned by Edward, JJ Johnson ltd is likely to adapt which of thefollowing strategies regarding Edward

a. Minimal effortb. Key playerc. Keep satisfiedd. Keep informed

5. Clair established a retail business in 1965. This business has now taken the form ofan international departmental stores chain. The business strongly follows the

beliefs like employees are the most important resource, customer is the key to

success; innovation creates progress etc. which were established by Clair.Setting such values and beliefs Clair established the foundations of organisational

culture. True or false?

a. Trueb. False

6.Florida Fish ltd is a recently established company. The companys work includespicking up fishes from seas and converting them into frozen foods which is then sell

at the retail outlets throughout USA. In a board meeting, it was decided that the

company should also enter new markets such as Asia. Following up the decision by

the board Florida Fish ltd has designed a company logo and registered it. Which of

the following elements of culture does the logo represent

a. Behaviorb. Artifactc. Rituals

7. Paul Collins, the CEO of Fudafesh ltd has been considering to improveorgansiational culture in his company. On Monday evening Paul attended a

workshop organized by the Californian institute of culture. In the workshop, Paul

listened that it might be the case where there can be more than one culture

operating in one organisation. Impressed from this speech Paul is inspired to

enforce different cultures at different levels in Fudafesh ltd. Which of the following

culture would be most suitable at middle managerial level?

a. Powerb. Taskc. Role


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8.Mrs. Carlil has a strict belief about system in organisations. According to Mrs. Carlilthe following system should be implemented in businesses which are the signs of

good organisations.

i. Strict roles and responsibilitiesii. Distance between managers and workers

iii. Obedience to rulesiv. Clear managerial authorityv. Strong chain of command

Which of the following Mrs. Carlil is avoiding in describing a good organisation?

a. Managerial commandb. Organisation structurec. Management based on productivityd. Informal organisation

9.At Jigjig ltd employees have the following attitudesi. Obedience of the company rules

ii. Regular attendanceiii. Proposition of innovative ideas to managementiv. No misuse of authorityv. Good informal organisation among each other

vi. Respect for workvii. Respect for management

The employees seem dissatisfied with the company. True or false?a. Trueb. False

10.Simpkins is a customer relation officer at the Pays bank working since 1998. Due tothe good interpersonal skills, Simpkins has established strong relations with

customers who give repeat business to Pays bank. Many customers know Pays bank

by the name of Simpkins. A dispute has arisen between the newly appointed

director of the bank and Simpkins. The director wants to replace Simpkins by a new

customer relations officer. Changing Simpkins by a new officer would cause a

strategic downturn to the Pays bank. True or false?

a. Trueb. False


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PERFORMANCE APPRAISAL

1. Appraisal system involves delivering feedback on the performance of an individualor a group. In performance appraisal interview, an interviewer is telling an

interviewee what mistakes he did, what were his positive points of performance,

where he is lacking, and what he needs to do to better up performance.

What kind of feedback is the interviewer giving?

a. Positive feedbackb. Negative feedbackc. Motivational feedbackd. None of the above

2. In a brief to subordinates, Julian tells them about performance management.Performance management involves the following;

i. Identifying the targetsii. Identifying standards

iii. Developing expectationsiv. Building up plan for performance

What is missing in the above?

a. Selecting organizational goalsb. Providing a job descriptionc. Checking up performanced. Rewarding on good performance

3. In a quick review session, McKay asks his subordinates to review their individualperformances and communicate the weaknesses to McKay. What may a possible

problem in this kind of appraisal?

a. Subordinates will quickly review their performanceb. Subordinates have a better idea of what they are doingc. Subordinates may hide their weaknessesd. Subordinates may rate them as high performers

4.Tim Cook is identified as prospective project manager at LEEDS constructions.Before appointing Tim Cook the project board is gathering up feedback about him.


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Question were asked from Cooks previous project team members, project

sponsors, other project managers.

What kind of appraisal is it?

a. 180 degreeb.

Lateral

c. Verticald. Diagonale. Multi-source

5. The following card is circulated by a hotel manager to each customer after they dineArea Your comments

Staff attitude ------------------------

Ambiance ------------------------

Food quality ------------------------

What kind of appraisal technique does the above table show?

a. Gradingb. Overall assessmentc. Fix criteria assessmentd. Results-orientated schemee. Behavioural incident method

6.In an appraisal interview, the interviewer offers the interviewee a cup of coffee torelax him. He then puts on the table the appraisal report. Without opening it, the

interviewer asks the interviewee to clarify his performance issues. He says to theinterviewee Calm down dear, I do not wish to pick up your veins, I just wanna

know whats that teasing you, why you arent showing up your colors, whats that

you are losing your mind on

Which of the Maiers appraisal interview approaches is shown by the conduct of the

interviewer?

a. Tell and listen methodb. Tell and sell methodc. Problem-solving methodd.

a and c

7. FINLAND PLC runs fun clubs. These fun clubs include games, social events, sportsand leisure facilities to members. FINLAND PLC, which once used to be a largest fun

clubs giant, has seen a serious decline in its revenue since 2008. A committee was

established by top management to investigate the causes of such decline. The

committee in its report, identified appraisal of performance as the most important


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cause. In his report the chairman commented FINLAND has good appraisal system.

The detailed performances of employees are discussed with them; weak points in

performance are also identified but the plans for improving the weaknesses are

seen to be little in place. Also at some managerial positions, we found no evidence

of how the staff improvement plans are implemented. Appraisal reports of allemployees are in place but our survey reveals that only 5 minutes/employee were

served in appraisal sessions. All these issues are causing significant decline in

revenue for FINLAND PLC as staff is getting more and more autocratic with little or

no controls being imposed on them

Which of the following barriers are evident in the committee report?

a. Bureaucracy and annual eventb. Unfinished business and bureaucracyc. Informal chat and bureaucracyd. Informal chat and unfinished business

8.In appraisal sessions, a manager asks his subordinates the following questions;i. What is your career goal?

ii. What kind of life do you want to enjoy?iii. What is your viewpoint about the companyiv. How we can improve performance

Also, the manager spends approx. 50 minutes in the appraisal interview with each

person. The interview sessions take 45 days to complete.

Which of the following are the possible pitfalls in the managers approach ofappraisal?

a. Relevance and fairnessb. Serious intent and co-operationc. Efficiency and fairnessd. Relevance and efficiency

9.An interviewer is discussing the performance problems with the interviewee. He isinviting the interviewee to respond to the performance issues. The interview is on

fire with comments and counter comments from both interviewer and interviewee.Which stage of the appraisal interview does the above situation relate?

a. Prepareb. Interviewc. Gain commitmentd. Report


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e. Follow up10.A manager explains in his speech about the appraisal system. He says Performance

appraisal is a positive process. The main purpose of this is to improve our efficiency

by identifying what we are doing and what we are expected to do. It helps in

finding our weak points and targeting our performance in those areas. You allshould feel good for performance appraisal sessions

Is the managers comment true or false?

a. Trueb. False

PERSONAL EFFECTIVENESS AND COMMUNICATION

1. John has established a small business as tax consultancy. Three staff members JUAN, JILLand SID accompany John in this business. John is the head of the three. Sid looks for the

clients who then communicate it to Jill. Jill immediately arranges a meeting to identify the

tax problems and work clients want the business to perform. Jill reports to Juan who

performs the consultancy work which is then approved by John.

Which of the following communication pattern is active in the business?

a. Yb. All channelc. Wheeld. Circle

2. Maureen works in HIGH FLY PLC as an accounts supervisor. Pushed by her high desire tobecome accounts manager, Maureen is planning to improve her skills and capabilities. She

has identified ACCA as bases to become manager. She intends to start her studies next

week in an ACCA approved learning provider. Which of the following plans she has made?

a. Personal development planb. Self-development planc. None of the above

3. Sameer and Vikram work in STEWARD PLC. Sameer is HR manager while Vikram is managerfor technical operations. In a meeting Sameer and Vikram communicated over what ITinfrastructure they need to develop for the HR dept. What kind of communication flow is it?

a. Verticalb. Lateralc. Diagonal


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4.Baraka bank and Lloyds bank of London have arranged to write off the customers who aredefaulters. For this purpose both banks are sharing their defaulter customer lists. What

kind of exchange is it?

a. EDI (Electronic data interchange)b. EDL (Exchange of defaulter list)c. MMIS (Merged management information systems)

5. Muneeb is a newly inducted accounts clerk. To overcome the initial difficulties of job,Muneeb is put under the strict guidance of Mansoor. Mansoor is an old fellow who guides

Muneer in areas such as preparation of general ledger, general entries and books of prime

entries. Mansoor also provides induction guidances to Muneer. Which role Mansoor is

playing here?

a. Coachb. Trainerc. Facilitatord. Counselor

6.Mr. Tim is the CFO of FOODS FOR LIFE. The company has lots of investment in foodsbusiness. FOODS FOR LIFE is an international foods chain. Mr. Tim believes in

communication and coordination as the base for effective performance. He uses both

formal and informal channels of communication to deliver his expectations to his staff. He

often uses informal speech during his formal ones. Unfortunately one of the units of

FOODS FOR LIFE needs to close due to eroding environmental conditions. Tim has two

options for the staff. First is to close the unit and pay the staff their respective

compensation. Second is to reposition staff member in other units of the company. Tim

wants to have an idea of what the staff members would think of each option. Which

communication channels might prove to be best for the situation described above?

a. Informal channels (grapevine)b. Formal channels (A staff meeting where everything is discussed with staff)

7. Hina is to complete the following tasksi. A staff meeting to brief staff for the weekly targets

ii. A meeting with a business partner which is going to start next monthiii. A project report which is to be delivered to the client tomorrow.

In which order Hina should perform these tasks?

a. i, ii, iiib. ii, iii, ic. iii, I, ii

8.Farhan needs to communicate overtime schedule to his staff for the next week. Farhandoes not want any ambiguity in schedules and want to make them crystal clear to his staff.

Which of the following communication tool should Farhan use?


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a. Facsimileb. Video conferencec. Meetingd. Memorandume. Conversation

9.ENVIRONMENT FRIENDS is asked to investigate environmental damages caused by one iftheir clients GREEN CITY. ENVIRONMENT FRIENDS investigated the desired concerns and

found many problems and weaknesses at GREEN CITY causing severe environmental

damage. The facts are hard and complicated with many of them including many reasons.

Which of the following method should the company use to communicate this matter to

GREEN CITY?

a. Interviewb. Conferencec. Meetingd.

Reporte. E-mail

10.Jessica has to address a newly inducted team of accounts clerks. In his address Jessicaneeds to clarify things such as;

i. Job descriptions of staffii. Their objectives

iii. Introduction of the businessiv. The career path of staff over 3 years

Which of the following must Jessica avoid to communicate clearly with the team?

a. Status barrierb. Technical jargonc. Noised. Distortione. Non-verbal signsf. Information overloadg. Conflict between team


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RECRUITMENT SELECTION

1. In a selection interview, James is given the following questions to answer;Question Yes No

1. Do you have 3 years ofexperience?2. Do you know to handle

FT344GTI engine?

3. Do you know to speakgood English?

4. Do you hold a professionaldegree?

What kind of selection interview questions does the above table is?

a. Probing questionb. Closed questionc. Open questiond. Leading question

2.The following points are prepared by the HR Director for the appointment of anaccounts manager.

i. Must have the capability to prepare financial statementsii. Should have good command over IASs and IFRSs

iii. Should be able to implement ethical standardsiv. Should be able to prepare clear notes to the financial statementsv. Should know to correct accounting and financial errors

Which of the following documents should accommodate the above points?

a. Job descriptionb. Job specificationc. Person specificationd. Technical specification

3. Samantha in a selection interview was asked by the interviewer the followingquestion;

Of course Samantha, no one would like a job without career boost, would

you?


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Which of the following question types is it?

a. Leading questionb. Closed question (as Samantha will either say yes or no)c. Probing questiond. Open question (as Samantha is asked to put her views on)

4.A person specification is prepared for customer relations officer. In it, it is writteni. The CRO should have no children

ii. He/she must be good lookingiii. Should have a reasonable cariv. Should have will to communicate

Which of the following points by Alex Rodgers, do the above points link?

a. Physical make-up, disposition, circumstancesb. Interests, circumstances, physical make-upc. Attainments, physical make-up, dispositiond. Circumstances, attainments, physical make-up

5. An HR manager and line manager are discussing about the job of productionsupervisor. They are talking about how much responsible should be the supervisor,

what skills and capabilities should have, what career prospects are present in the

job, where do the job of a supervisor fits in the company.

What the HR manager and line manager doing?

a. Preparing person specificationb. Preparing job analysis sheetc. Preparing job descriptiond. Preparing job specification

6.City bank is about to hire its treasurer. As treasure is a high position in a bank, theHR director is confused as to how he should appraise the candidates for the post.

Which of the following approaches should the director adopt?

a. Interviewb. Interview and testc. Demod.

Interview and references

7. The HR manager is of the view about young candidates for managerial position that;Young candidates are often very energetic but immature. Managerial position

must be occupied by a person of a mature age

All the candidates for the job were interviewed with this myth.


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What this myth of the manager should be classified as?

a. Stereotypingb. Halo effectc. Incorrect assessmentd. Logical error

8.An internal auditor is to be appointed by the BANK OF PUNJAB. The personspecification says that the candidate should possess the following qualities;

i. Analytical abilityii. He should be enough intelligent to identify a fraudster

iii. He should be a person capable of designing and implementing anideal internal control system

iv. Must have good gesture and postureWhich of the following do the above qualities relate?

a. Perceptual abilitiesb. Creative abilitiesc. Spatio abilitiesd. Spatio-visual abilities

9.An audit manager is explaining the qualities of a good auditor to his audit team. Hebriefs;

i. An auditor should be humble in natureii. An auditor should have courteous behavior to communicate with

clients

iii. An auditor should timely perform his duties to the clientsiv. An auditor needs to be responsible in his job

Which of the following do the above relate?

a. Work-based competencyb. Behavioral competencyc. Generic competencyd. Competency for client satisfaction

10.ACCA has two main categories of employers. The first one is gold employers and thesecond one is platinum employers. ACCA remains in coordination with all gold and

platinum employers so that it can place its members, affiliates and students with

them. ACCA is determined to place its members, affiliates and students on job for

the credibility of ACCA qualification

In this, ACCA is a recruitment consultant to;


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a. Employersb. Members, affiliates and students

THE BUSINESS ENVIRONMENT

1. BIG CORPS deals in the manufacturing of technological equipment. Its mainproducts include;

i. USB disksii. Scanners

iii. High speed security alertsiv. Mini processor chipsv. Other functional utilities

The company had a big name in UKRAINE. Recently it has expanded its operations in

USA and UK. In a meeting, discussing the progress of BIG CORPS the CEO exclaimed

Its not that easy nuts. Here we are faced with multiple producers producing all we

do, multiple minded customers changing their view to technology hourly, multiple

supply channels and a WWE like wrestling competition. We need to innovate

otherwise well be off soon

What kind of environment is likely to be observed in USA and UK?

a. Complex environmentb. Dynamic environmentc. Complex and Dynamic environmentd. Unstable environment

2.P & G started its operations in UKRAINE. As soon as it started the UKRANIANgovernment imposed high regulations on the company such as;

i. Submission of environmental reportsii. Mitigation of social footprints plans

iii. Sustainable development plansiv. Sea water saving plans

P & G now sees it hard to manage its operations as it is pre-burdened by thegovernment through legislations.

What these high regulations requirements are called?

a. Legal infrastructure of a countryb. Legal frameworkc. Legal eye


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d. Red tapism3. The management of GULF DREAM CRUISE finds the following in their operations;

i. Highly motivated staffii. Good financial health

iii. Excellent sailing skillsiv. Beautiful cruise infrastructurev. Best customer servings in bookings and on cruise

vi. Tough competition from competitorsvii. Changing economic conditions

viii. Changing social attitudes of the peopleix. High technological boostx. GREEN legislations by government

Which of the following is shown in the above 10 points?

a. Complex external environmentb. Dynamic environmentc. Stable environmentd. General and task environment

4.Fahad works in Karachi Shipyard. He was appointed as an accounts supervisor. Hewas dismissed by the Shipyard due to Fahad being a Balochi person. Fahad filed a

case against Shipyard in the court of law.

Fahads dismissal is an example of;

a. Wrongful dismissalb. Unfair dismissalc. Illegitimate dismissald. Unreasonable dismissal

5. Wasims personal data was held by his employer. The data included;i. Wasims salary

ii. His bank account numberiii. His CViv. His previous employment records

His employer gave Wasims data to someone without the prior permission of

Wasim.

Which of the following is not a suitable remedy available to Wasim under Data

Protection Act?

a. Wasim can seek compensation for the illegal useb. Wasim can apply in the court of law for the correction of his incorrect data


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c. Wasim can sue his employer for the damage or distress causedd. Wasim has a right to access his personal data held by his employer

6.Natalie Portman sells cosmetic products in her fashion store. Natalie is well knownfor her products which are highly appreciated by customers. Cindy purchased a kit

from Natalie. Natalie had shown Cindy a sample of the cosmetics before purchase.When delivered to Cindy, it was found that some items in the kit were not the same

as shown in the sample.

Which of the following Acts is not fulfilled by Natalie in her sales to Cindy?

a. Contract law (as the delivered kit was not according to contract)b. Sales of Goods Actc. Trade laws (as Natalie is in breach of trading regulations)d. Consumer Protection legislation (as Cindy was not given the right product)

7. The Treasurer of ABC BANK was killed in a road accident. The directors held ameeting to decide his successor but could not find any suitably qualified and skilledperson for the designation. One of the director proposed an idea to outsource the

banks treasury work to KPMG so that it could be managed in a professional way till

the time a new treasurer is appointed. The proposal was agreed and KPMG was

outsourced the banks treasury department.

What kind of outsourcing is it?

a. Ad-hoc outsourcingb. Temporary outsourcingc. Project outsourcingd. Partial outsourcing

8.GLIMSY Ltd. deals in food products. The company has its manufacturing facilities inmany parts of the country. There is also a specialized department for the purchase

of raw materials. The raw materials purchased are first stored in the special

warehouses owned by the company off the factories. The raw material is then

delivered to factories from where it is manufactured and delivered to sales. The

company is facing tough time due to bad economic conditions. Customers are

unwilling to pay high amounts for the food products offered by GLIMSY. The

directors have now decided to pursue a cost efficient strategy.

Which of the following elements of the value chain needs to be controlled by thecompany?

a. Outbound logisticsb. Inbound logisticsc. Productiond. Firm infrastructure (merging the warehouses into factories)


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9.AUTOFONE sells mobile phones with communication networks. There are mainlyfour network providers who have contracted with the government for 25 years.

AUTOFONE sells mobile phones through shops. It has also a network of online sales.

Staff at AUTOFONE describe the customers all pros and cons of the four networks

as well as of the mobile phones. The customers then select the phone and networkprovider as they like.

Which of the following is high in case of AUTOFONE?

a. AUTOFONEs monotonyb. Customer powerc. Supplier powerd. Rivalry between network providers

10.Mike runs a chain of auto garages. The garages are built on an area of 2400 sq. ft. Acrew of 40 staff works in each garage. Mike read a news in technology magazine

that a new hydraulic machinery is produced which can do work form fixing thebonnets to fixing the engine. Its a costly machine but once installed will enable

Mike to save labor cost. The number of crew members will instantly shrink to 15

resulting in savings of labor costs paid.

The installment of this machinery will result in;

a. Downsizingb. Redundancyc. Dismissal of staff membersd. Automation of the garage work


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THE MACRO ECONOMIC ENVIRONMENT

1. In UK tax system, the tax structure is as followsIncome

range ()

Non-saving income Saving income Dividend income

1 2440 Nil 10% Nil

2441 37400 20% 20% 10%

37401 above

40% 40% 32.5%

The above table represents which tax structure

a. Progressive taxb. Regressive taxc. Proportional taxd. Relative tax

2.Swedish government is planning the following;i. 5% to be invested in education sector

ii. 61% to be invested for country defenseiii. 2% investment in road constructionsiv. 12% to be given to industriesv. 15% to be raised from world bank

Which of the following policies would accommodate the above?

a. Fiscal policyb. Monetary policyc. Revenue policy for governmentd. Expenditure policy for government

3. Tax is the main revenue for government. Mainly there are two tax systems directand indirect. In country A the ratio of direct and indirect taxes is 7:3 where as in

country B it is 3:7.

From the above statistics, which country is likely to have more inflation?

a. Country Ab. Country Bc. Equal inflationd. None of the above

4.In Zimbabwe, the power of currency is nearly eroded. People have to pay enoughcash even for the purchase of a pen. Lots of people are moving to find a job but


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happy are the ones who are on the job. The countrys trade outs are badly hit and

the trade ins are increasing high.

What is the condition in Zimbabwe?

a. Recessionb.

High inflation

c. Hyper inflationd. Stagflation

5. MODI incorporation runs hair saloons internationally. In country X, the companyoften changes its prices mostly going up. In an interview to press, Robert hawks

said Country X is all the way different. The company established a blanket policy

for its rates throughout but the changing costs of labor, materials and overheads

have been an overhead for the company pushing it to put up its prices. We are

trying our level best for it but we need the government to take active action to take

into count whats going on thereWhich of the following is happening in country X?

a. Hyper inflationb. Stagflationc. Demand pull inflationd. Cost push inflation

6.JAMAICA is developing its high market in textiles. Large contracts from UK, US andGermany for textile shifted to JAMAICA recent year but still the government is

having high rate of unemployment. When investigated, it was found that textile is a

highly technological sector which needs educated and skilled people to work butthe Jamaican workforce is mostly illiterate and unskilled causing unemployment

What kind of unemployment is it?

a. Cyclicalb. Frictionalc. Structurald. Technological

7. UK government is planning about its monetary value. A team of economists set bythe government is trying to assess the impact of fall in the value of pounds on the

payment of countrys current accountWhich of the following is the team working on?

a. Lagging indicatorb. Coincident indicatorc. Leading indicator


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8.Due to the bad economic conditions, businesses in county A are unable to pay highto their labors. Inflation is ever increasing in this country. Consumer goods are

going out of an ordinary persons pocket. People are thinking it hard to work at

lower labor rates due to which unemployment is increasing

Which of the following does this situation relate?a. Frictional unemploymentb. Real-wage unemploymentc. Cyclical unemploymentd. Technological unemployment

9.Automobile industry in country Y is badly hit. The banks used to be a good marketfor automobiles as they give installment plans to their customer for automobiles. In

a recent policy, the government increased the bank rate from 12% to 18% which

resulted in an increase in installments charged by the bank to their customers.

Inflation is also increasing in country Y.Which of the following would accommodate the above situation?

a. Government policy for interest ratesb. Monetary policyc. Fiscal policyd. Government policy for spending

10.The conditions in country B are;i. 30 million students and 30 thousand colleges

ii. 20 million unemployed people and 20000 factoriesiii. 60 million citizens and 9000 hospitals

Which of the following statement is incorrect?

a. Government is having difficulties running the countryb. People are having lower lifestylec. Aggregate demand is high than supplyd. Effective monetary policy can help reducing the problems

THE ROLE OF ACCOUNTING

1. SONY the international producer of electrical goods for home and businesspurposes wants to structure its accounting function. The company accounts reflect

the large size of the business with thousands of accounts and statements. Which of


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the following factors will count more in structuring the accounting function of

SONY as compared to EQUI FOR YOU (a local producer of electrical goods for home

and business use)?

a. Organizational structureb.

Complexity in accounts

c. Size of the businessd. Brand namee. Number of accounts

2.BIZZY Ltd. is a large public company running chain of hotels in the beach area ofMaldives. The company has produced a statement showing the following;

i. Future prospects of the companyii. Its plans about its staff

iii. Companys growth aspectsiv. Career progression for the staffv. Reward programs etc.

Which of the following stakeholders are most interested in the above statement?

a. Connected stakeholdersb. External stakeholdersc. Internal stakeholders

3. At STANDARD CHARTERED BANK, Mr. Wahaj has an office. His main duties for thebank are;

i. Identifying good investment opportunities where customer funds canbe best managed

ii. Identification of the mark-up rate the bank should give customerscredit on

iii. The management of funds to make sure bank is not out of funds orcash at any time

Which of the following is likely to be the designation of Mr. Wahaj at STANDARD

CHARTERED?

a. Cashierb. Funds managerc. Management accountantd. Treasurere. Bank trustee


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4.FISHES IN SEA Company is to prepare its financial statements for the first time.Which of the following should it not take care of when preparing its financial

statements?

a. IASs (International Accounting Standards)b. IFRSs (International Financial Reporting Standards)c. The requirements of IASB (International Accounting Standards Board)d. GAAP (Generally Accepted Accounting Practice)e. None of the above

5. Ahmed is implementing strict controls in his business such as;i. Using locks and passwords

ii. Authorization limitsiii. Credit control

What kind of controls do the above relate?

a. Managerial controlsb. Non-financial controlsc. Administrative controlsd. Accounting controls

6.Salma is an assistant to Jahanzeb who is an accounts manager. Salma is currentlygiven a task of preparing a document showing the links of accounts department

with other departments in the company. Salma has prepared the following;

Accounts section Relates to.1. Purchase ledger Purchases dept.2. Sales ledger Inventory control3. Accounts dept. as a

wholeSenior management

4. Payroll Human resource department

Which of the above relationship is incorrect?

a.

1b. 2c. 3d. 4

7. Sandra works in BIGBANG PLC. Her job description includes the following mattersi. Should the firm borrow or issue shares


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ii. How much should be given to customers as creditiii. How much discount should be given to customers

What is the possible job title of Sandra?

a. Financial managerb.

Management accountant

c. Treasurerd. Financial accountant

8.Tina is having the following problems in her officei. Invoices are missing

ii. Documentation is improperiii. Suppliers are being regularly paid but they are constantly invoicing

What is shown by the above mentioned issues?

a. Weak qualitative controlsb. Proper procedures being implementedc. Poor management by Tinad. Weak procedures for recording the documents and events

9.Flutcher prepares the following brief for his subordinatesi. Collection of logical fields is a file

ii. Collection of logical records is a databaseiii. Collection of files is a record

Which of the above statement

business ion and their stakeholders

Documents