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Accountant in Business Flashcards

7 cards from real ACCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which of the following is a key feature of a 'limited liability company' (LLC / Ltd)?

    Answer: The company has a legal identity separate from its owners

    Incorporation creates a separate legal entity, meaning shareholders' liability is limited to their investment.

  2. What is the purpose of a 'code of ethics' in a professional accounting body such as ACCA?

    Answer: To establish principles and rules governing professional behavior and integrity

    A code of ethics defines the values and conduct expected of members, including integrity, objectivity, and professional competence.

  3. Which motivation theory identifies 'hygiene factors' (e.g., salary, working conditions) that prevent dissatisfaction but do not motivate on their own?

    Answer: Herzberg's two-factor theory

    Herzberg distinguished between hygiene factors (which cause dissatisfaction if absent) and motivators (which actively drive performance).

  4. Which of the following describes a 'matrix' organizational structure?

    Answer: Employees report to both a functional manager and a project manager simultaneously

    A matrix structure overlays project or product teams on functional departments, creating dual reporting lines.

  5. An organization experiences a flood that destroys its server room. Which type of risk does this represent?

    Answer: Operational risk

    Operational risk includes losses from failed internal processes, systems, or external events such as natural disasters.

  6. Which of the following best describes 'outsourcing' as a business strategy?

    Answer: Contracting a third party to perform functions previously done internally

    Outsourcing transfers specific business activities to an external provider, often to reduce costs or access specialist expertise.

  7. Which document sets out the rules governing a company's internal management and decision-making procedures?

    Answer: Articles of association

    The articles of association (bylaws) contain the regulations for a company's internal governance, including director powers and shareholder rights.