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

 
192 
KA P LA N P UBL I SH IN G 
5 C 
Demand would be stimulated as firms and households would have more money after tax 
for investment/consumption or saving. The increased public expenditure would not be 
covered by an increase in tax revenue and would therefore have to be financed by 
increasing government borrowing, the PSNCR. 
6 B 
In order to be classified as a profession, there must be enforced compliance with an 
appropriate ethical code. 
7 D 
According to Herzberg’s theory only training is a motivator. The others are all hygiene 
factors - the absence of which will cause dissatisfaction but their presence will not lead to 
long-term motivation. Note that staff bonuses (in addition to their salaries) could be a 
motivator if they are used to recognise good performance. 
8 A 
The span of control is the number of people for whom a manager is directly responsible. 
Scalar chain relates to the number of management levels within an organisation.
9 C 
A non-executive director must not have been an employee of the organisation in the last 
five years and should not have had a 
material
business interest in the company in the last 
three years. They should also not participate in the company’s share options or pension 
schemes. 
10 B 
A connected stakeholder is one that has a contractual arrangement with the organisation; a 
shareholder is such a stakeholder.
The government and media are external stakeholders 
A director is an internal stakeholder. 
11 C 
Recession is part of the business cycle when demand for output and therefore employees 
falls so unemployment rises.
A is an example of seasonal unemployment.
B is technological unemployment.
D is an example of real wage unemployment. 
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