Business & Technology Flashcards
6 cards from real ACCA AK practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business & Technology flashcards as text
Centralisation of authority in an organisation means:
Answer: All significant decisions are made at or near the top of the hierarchy
Centralisation concentrates decision-making authority at the top of the organisation, ensuring consistency but potentially slowing response times.
Which of the following is an example of a non-financial performance indicator?
Answer: Customer satisfaction score
Customer satisfaction score measures performance in non-monetary terms; the others are all financial ratios derived from accounting data.
The concept of 'span of control' refers to:
Answer: The number of subordinates directly reporting to a manager
Span of control is the number of employees directly supervised by one manager. Wide spans suit flat structures; narrow spans suit tall structures.
Which stakeholder group would typically be most concerned with an organisation's ability to repay its debts?
Answer: Lenders/creditors
Lenders and creditors are primarily concerned with the organisation's ability to service and repay debt, making liquidity and solvency key interests.
According to Mendelow's matrix, stakeholders with HIGH power and HIGH interest should be:
Answer: Managed closely
Mendelow's matrix places high-power, high-interest stakeholders in the 'key players' quadrant, requiring close management and active engagement.
Which of the following best describes 'outsourcing'?
Answer: Contracting an external provider to perform a business activity previously done in-house
Outsourcing means contracting an outside organisation to carry out a function or service that was previously performed internally.