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

(1 mark)
18 Porter’s five forces model identifies external factors that determine the potential 
profitability and therefore attractiveness of a particular industry. Which of the following 
is one of these forces? 
A 
Bargaining power of buyers 
B 
Government regulation of the industry 
C Fiscal 
policy 
D Technological 
innovation 
(2 marks)
Download Free Acca,ca study materials from WWW.ACCOUNTANCYWALLS.COM

---

PRACTICE SIMULATION QUE S TIONS :
S E CTI ON 5
K APLA N PUBLISH ING 
177
19 
Country M has a large number of service industries. It has recently decided to implement 
minimum wage legislation, meaning that all workers are guaranteed a certain level of pay. 
This level has been set slightly higher than the current average wage.
Which of the following is a likely consequence of this legislation? 
A 
A reduction in the supply of labour within country M 
B 
An excess of labour supply (increased unemployment) within country M 
C 
A reduction in prices charged to consumers, benefiting those on low incomes 
D 
An increase in the quality of services offered within country M 
(2 marks)
20 
_________ systems pool data from internal and external sources and make information 
available to senior managers for unstructured decisions. 
Which word or phrase correctly completes the above sentence?
A Expert 
B Executive 
information 
C Management 
information 
D Decision 
support 
(2 marks)
21 Which of the following are consequences of a failure to comply with the legal 
requirements of maintaining financial records? 
(i) Fines 
(ii) Prosecution 
(iii) 
Difficulties raising finance 
(iv) 
Unqualified audit report 
(v) Damaged 
reputation 
(vi) 
Qualified audit report 
A 
(i), (ii), (v) and (vi) only 
B 
(i), (ii), (iii) and (iv) only 
C 
(i), (ii), (iii), (iv) and (v) only 
D 
(i), (ii), (iii), (v) and (vi) only 
(2 marks)
Download Free Acca,ca study materials from WWW.ACCOUNTANCYWALLS.COM

---