Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

59 C 
In this case, A’s shareholders have a high level of power, but a low level of interest. 
60 
B – FALSE 
This approach is referred to as Keep Informed, whereas minimal effort implies that 
stakeholders will accept what they are told. 
61 
A – TRUE
This is correct as customers have an interest in higher levels of product and service quality 
and, in the short term at least, satisfying this interest is likely to reduce the profits and 
dividends available to shareholders. 
62 A 
If stakeholders have little interest in the business and no real power, there is no point to a 
business doing more than minimal effort.
EXTERNAL ANALYSIS – POLITICAL AND LEGAL FACTORS 
63 C 
A = Technological heading, B = Economic heading, D = Social heading. 
64 
B – FALSE 
Constructive dismissal is when an employee resigns because their employer has breached 
the terms of their contract. The definition given in the question is that of redundancy. 
65 A 
The other reason for unfair dismissal is due to legal reasons (i.e. a criminal record may 
prevent someone from holding a particular job). 
 
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ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :
S EC T I O N 3
K APLA N PUBLISH ING
131 
66 A 
Privatisation refers to a government selling its assets. 
67 A 
Other sources include the International Court of Justice, European parliament, European 
courts and certain international agreements, e.g. World Trade Organisation rules. 
68 C 
The Act imposes obligations on the Data Controller (an individual or an organisation who 
has information about the individual), and the rights of the Data Subject (individual about 
whom the information is held). 
69 D 
All four are the rights of individuals with respect to information stored about them. The 
other three are the right to prevent processing likely to cause damage or distress, the right 
to take action for compensation and the right to request that the Commissioner assesses 
whether the legislation has been contravened. 
70 D 
The credit file company must provide A with access to his credit file. However, A does not 
have the right to request this for free and may have to pay a fee. 
A can also use typical data protection legislation to block direct marketing. However, junk 
mail is likely to be sent to a large number of recipients and therefore is not direct 
marketing.