ACCA AK Business and Technology (BT) Core — Questions and Answers
Question 1: Which of the following best describes the role of a mission statement in an organisation?
- It sets out the organisation's purpose and reason for existence (Correct answer)
- It details the specific financial targets for the next year
- It provides a breakdown of departmental budgets
- It lists the names of the board of directors
Correct answer: It sets out the organisation's purpose and reason for existence
A mission statement defines the fundamental purpose of an organisation — why it exists and what it seeks to achieve. It is distinct from financial targets, budgets, or governance structures.
Question 2: In Mintzberg's organisational configurations, which structure is characterised by a dominant strategic apex with centralised decision-making?
- Machine bureaucracy
- Simple structure (Correct answer)
- Professional bureaucracy
- Adhocracy
Correct answer: Simple structure
Mintzberg's simple structure features a dominant strategic apex (typically the owner/founder) who makes all key decisions centrally, with minimal middle management and little formalisation.
Question 3: Under the UK Bribery Act 2010, which of the following would constitute an offence?
- Offering a discount to a long-standing customer
- Providing hospitality at a sporting event that is proportionate and reasonable
- Making a payment to a foreign official to secure a government contract (Correct answer)
- Giving a promotional gift worth £5 at a trade fair
Correct answer: Making a payment to a foreign official to secure a government contract
The UK Bribery Act 2010 makes it an offence to bribe a foreign public official to obtain or retain business. Proportionate hospitality and modest promotional gifts are generally not offences.
Question 4: Which of the following is a characteristic of an entrepreneurial structure?
- Extensive rules and procedures governing employee behaviour
- Decision-making concentrated at the top with the owner-manager (Correct answer)
- A wide span of control at middle management level
- Heavy reliance on technostructure for standardisation
Correct answer: Decision-making concentrated at the top with the owner-manager
An entrepreneurial structure is typified by centralised decision-making by the owner-manager, with few formal rules, minimal hierarchy, and direct supervision as the primary coordinating mechanism.
Question 5: Which stakeholder mapping model plots stakeholders according to their level of interest and power?
- Porter's Five Forces
- Mendelow's matrix (Correct answer)
- The BCG matrix
- Ansoff's matrix
Correct answer: Mendelow's matrix
Mendelow's matrix (also called the power/interest matrix) classifies stakeholders into four quadrants based on their level of power and level of interest, helping organisations determine appropriate engagement strategies.
Question 6: What does the acronym PESTEL stand for in the context of environmental analysis?
- Political, Economic, Social, Technological, Environmental, Legal (Correct answer)
- Price, Earnings, Sales, Tax, Equity, Liability
- Production, Efficiency, Strategy, Technology, Employment, Logistics
- Planning, Execution, Sourcing, Training, Evaluation, Leadership
Correct answer: Political, Economic, Social, Technological, Environmental, Legal
PESTEL analysis examines the macro-environmental factors affecting an organisation: Political, Economic, Social, Technological, Environmental, and Legal. It is a widely used framework in strategic analysis.
ACCA AK Business and Technology (BT) Core
Which of the following best describes the role of a mission statement in an organisation?