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

Which of Porter’s value chain activities is the department responsible for? 
A Procurement 
B Operations 
C Inbound 
logistics 
D Infrastructure
 (2 
marks) 
117 
A company who sells its product at a price below that of similar rival products is likely to 
have adopted a differentiation strategy. 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
118 
H provides a range of products and services that are tailored specifically to pregnant 
women. 
What type of strategy is H adopting? 
A Focus 
B Differentiation 
(1 mark)
119 Porter’s value chain determines whether and how a firm’s activities contribute to which 
of the following? 
A 
its long term survival 
B 
its competitive advantage 
C its 
profitability 
D 
its productive capacity 
(2 marks) 
120 
BCD Co is a large trading company. Steve is the administration manager and is also 
responsible for legal and compliance functions. Sheila is responsible for customer service 
and has responsibility for ensuring that customers who have purchased goods from BCD Co 
are fully satisfied. Sunny deals with suppliers and negotiates on the price and quality of 
inventory. He is also responsible for identifying the most appropriate suppliers of plant and 
machinery for the factory. Sam is the information technology manager and is responsible 
for all information systems within the company. 
According to Porter’s value chain, which of the managers is involved in a primary activity 
as opposed to a support activity? 
A Steve 
B Sheila 
C Sunny 
D Sam 
(2 marks)
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