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

P AP E R F 1 ( F A B )
: A CCOU N TAN T IN B US INES S
 
124 
KA P LA N P UBL I SH IN G 
7 C 
Co-operatives are organised solely to meet the needs of the member-owners. Non-
governmental organisations (NGOs) do not have profit as a primary goal and are not linked 
to national governments. Charities may be examples of NGOs. Private limited companies 
have shareholders, not members. 
8 B 
Westeros is a profit-seeking organisation – given that its fifteen owners own ‘shares’, it 
must be a private limited company. As such, only B is likely to be appropriate from the 
options provided. Central government funding is usually for public sector organisations, 
donations would usually be the major source of funding for charities and Westeros cannot 
issues shares to the public as it is a private limited company. 
9 A 
NFPs may have radically different objectives – a charity may aim to help, say, animals under 
threat of extinction while a hospital may wish to treat its patients as effectively as possible. 
Government funded organisations are usually concerned with providing basic government 
services. This does not always involve minimising the costs of their operations. 
10 A 
NGOs are any organisations that do not have profit as a primary goal and are not directly 
linked to the government. Most charities would fall into this category. 
BUSINESS ORGANISATION AND STRUCTURE 
11 B 
Because the entrepreneurial structure is run by one person who makes all the decisions, 
this powerful individual will have strong control over the organisation and its strategic 
direction, leading to better goal congruence. 
12 D 
Function managers may make decisions to increase their own power, or in the interests of 
their own function, rather than in the interests of the company overall. Economies of scale, 
standardisation and specialists feeling comfortable are advantages of a functional structure. 
13 C 
The features given suggest that this is an example of a machine bureaucracy – large 
numbers of rules and procedures and significant standardisation. 
 
Download Free Acca,ca study materials from WWW.ACCOUNTANCYWALLS.COM

---

ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :