ACCA AK Business & Technology 1 — Questions and Answers
Question 1: Which of the following best describes a 'flat' organisational structure?
- Few levels of hierarchy and wide spans of control (Correct answer)
- Many levels of hierarchy and narrow spans of control
- A structure based purely on geographic regions
- A structure with no formal reporting lines
Correct answer: Few levels of hierarchy and wide spans of control
A flat structure has few management layers and each manager oversees many subordinates (wide span of control), enabling faster communication.
Question 2: Which ethical principle requires a professional accountant to be straightforward and honest in all professional and business relationships?
- Objectivity
- Integrity (Correct answer)
- Confidentiality
- Professional competence
Correct answer: Integrity
Integrity under the ACCA Code of Ethics means being straightforward and honest; it is the foundation of trust in the profession.
Question 3: A matrix organisational structure is best described as one where:
- Employees report to both a functional manager and a project manager (Correct answer)
- All authority flows from a single chief executive
- Divisions operate as independent profit centres
- Work is organised solely by geographic region
Correct answer: Employees report to both a functional manager and a project manager
In a matrix structure employees have dual reporting lines — to a functional head and a project/product manager — allowing flexible resource use.
Question 4: Which of the following is a characteristic of a 'tall' organisational structure?
- Wide spans of control
- Decentralised decision-making
- Many hierarchical levels (Correct answer)
- Few management layers
Correct answer: Many hierarchical levels
A tall structure has many levels of management, resulting in narrow spans of control and more centralised decision-making.
Question 5: Corporate governance primarily refers to:
- The day-to-day operational management of a company
- The system by which companies are directed and controlled (Correct answer)
- The preparation of financial statements
- The marketing strategy of a business
Correct answer: The system by which companies are directed and controlled
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled, balancing the interests of stakeholders.
Question 6: Which of the following best describes the role of the internal audit function?
- To express an opinion on the truth and fairness of financial statements
- To provide independent assurance that an organisation's risk management and governance processes are operating effectively (Correct answer)
- To prepare management accounts for internal use
- To ensure all tax returns are filed on time
Correct answer: To provide independent assurance that an organisation's risk management and governance processes are operating effectively
Internal audit provides independent, objective assurance and consulting activity designed to add value and improve an organisation's operations, focusing on risk, control and governance.
ACCA AK Business & Technology 1
Which of the following best describes a 'flat' organisational structure?