ACCA Accountant in Business 2 — Questions and Answers
Question 1: Which type of organizational structure groups employees by function, such as finance, marketing, and operations?
- Matrix structure
- Functional structure (Correct answer)
- Divisional structure
- Network structure
Correct answer: Functional structure
A functional structure organizes employees by specialized departments or functions rather than by product or geography.
Question 2: In the context of corporate governance, what is the primary role of a non-executive director (NED)?
- To manage day-to-day operations of the business
- To provide independent oversight and challenge executive decisions (Correct answer)
- To prepare the company's financial statements
- To act as the company's external auditor
Correct answer: To provide independent oversight and challenge executive decisions
NEDs provide independent scrutiny of executive management and contribute to strategy, risk, and performance oversight.
Question 3: Which of the following best describes 'span of control' in an organization?
- The number of levels in an organizational hierarchy
- The number of subordinates a manager directly supervises (Correct answer)
- The geographic reach of a company's operations
- The range of products a company offers
Correct answer: The number of subordinates a manager directly supervises
Span of control refers to how many direct reports a single manager oversees.
Question 4: A company adopts a policy of rotating its external auditors every five years. Which governance principle does this primarily support?
- Accountability
- Transparency
- Independence (Correct answer)
- Integrity
Correct answer: Independence
Auditor rotation reduces the risk of familiarity threats, preserving the auditor's independence from management.
Question 5: Under Mintzberg's managerial roles, which role involves a manager representing the organization at formal events?
- Monitor
- Disseminator
- Figurehead (Correct answer)
- Liaison
Correct answer: Figurehead
The figurehead role is a ceremonial interpersonal role where the manager acts as a symbolic head of the organization.
Question 6: Which internal control activity involves checking that two different departments' records agree with each other?
- Authorization
- Segregation of duties
- Reconciliation (Correct answer)
- Physical safeguards
Correct answer: Reconciliation
Reconciliation compares records from two independent sources to identify discrepancies, such as matching bank statements to ledger balances.
Question 7: An employee discovers that a colleague is submitting false expense claims. According to professional ethics, what should the employee do first?
- Ignore it to avoid conflict
- Report it directly to external regulators
- Follow the organization's whistleblowing or internal reporting procedures (Correct answer)
- Confront the colleague publicly
Correct answer: Follow the organization's whistleblowing or internal reporting procedures
Internal reporting procedures should generally be the first step, as organizations are expected to have channels for raising concerns about misconduct.
ACCA Accountant in Business 2
Which type of organizational structure groups employees by function, such as finance, marketing, and operations?