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

select A, B, C or D. 
(1 mark) 
(Total: 4 marks) 
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
186 
KA P LA N P UBL I SH IN G 
3
 
Porter’s value chain examines the various activities that make up an organisation’s 
operations. 
Required:
(a) 
Which activity from Porter’s value chain is being described below? 
A 
The transformation of inputs into outputs 
B 
Purchasing of materials as well as other resources 
C 
How the firm is organised 
D 
Any activities that occur after the point of sale 
(i) 
Service. Select ONE of A, B, C or D 
(ii) 
Operations. Select ONE of A, B, C or D 
(iii) 
Procurement. Select ONE of A, B, C or D 
(iv) 
Infrastructure. Select ONE of A, B, C or D 
(2 marks) 
(b) 
According to Porter’s five forces model, which of these would tend to indicate there 
is a low threat of new entrants to the market? 
A 
Low capital requirements 
B 
Patents exist on major product lines 
C 
Access to distribution channels is not restricted 
D 
Large numbers of suppliers of raw materials 
E 
Low switching costs for customers 
F 
Existing firms in the market are large
G 
Rapidly expanding market 
Required: 
Write down which two of the above indicate a low threat of new entrants by 
selecting TWO of the letters from (A, B, C, D, E, F, G). 
(2 marks) 
(Total: 4 marks) 
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PRACTICE SIMULATION QUE S TIONS :