ACCA BT Structure, culture, governance and sustainability: practice questions with answers

Question 1

According to Mintzberg, which part of an organisation includes analysts who standardise work, such as planners and work-study specialists?

1. A Strategic apex
2. B Technostructure
3. C Support staff
4. D Middle line

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Answer: B. The technostructure standardises work processes, outputs and skills, through planners, analysts and similar specialists.

Question 2

Why do corporate governance codes recommend that the roles of chairman and chief executive are held by different people?

1. A To meet stock exchange listing fees
2. B To reduce the cost of the board
3. C To speed up board decisions
4. D To avoid too much power being held by one individual

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Answer: D. Separating the roles avoids unfettered power in one person: the chairman runs the board, while the CEO runs the business.

Question 3

In a decentralised organisation, decision-making authority is delegated to lower levels of management.

1. A True
2. B False

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Answer: A. Decentralisation pushes decisions down the organisation, closer to the people affected.

Question 4

In a functional structure, the organisation is divided into departments based on specialisms such as production, sales and finance.

1. A True
2. B False

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Answer: A. A functional structure groups people by the specialist work they do (production, sales, finance, HR). Grouping by product, market or region describes a divisional structure.

Question 5

The board of Ellery Co, a hotel group, wants to set corporate social responsibility (CSR) objectives that are relevant to its business and whose achievement can be monitored. Which approach is most appropriate?

1. A Identify its key stakeholders and their needs, set measurable targets for the most significant issues, and report on progress
2. B Adopt the CSR targets published by the largest company in a different industry, as these represent recognised best practice
3. C Set a single target of increasing charitable donations each year, as donations are the easiest CSR activity to measure
4. D Avoid setting any CSR targets, since social responsibility cannot really be measured and is best left to each manager's own judgement

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Answer: A. Organisations take account of their social responsibility objectives by analysing the needs and expectations of their stakeholders (internal, connected and external), deciding which issues are most significant for their business, and turning them into measurable objectives. For a hotel group these might cover energy and water use, waste, fair treatment of staff and local sourcing. Progress is then monitored and reported, for example in a sustainability report.

Question 6

Which of the following is normally a duty of the secretary of a committee, rather than the chair?

1. A Keeping order and making sure all members have a chance to contribute
2. B Using a casting vote when votes on a decision are equal
3. C Taking the minutes of the meeting and circulating them to members
4. D Signing the minutes of the previous meeting as a correct record

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Answer: C. The chair runs the meeting: keeping order, following the agenda, making sure everyone can contribute, signing approved minutes and, where the rules allow, using a casting vote. The secretary handles the administration: preparing and sending out the notice and agenda (in consultation with the chair), circulating papers, and taking and circulating the minutes.