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

21 
B – FALSE 
Offshoring typically involves the transfer of a function to an overseas location to reduce 
running costs. It would not normally involve transferring existing staff members to the 
other country. 
 
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P AP E R F 1 ( F A B )
: A CCOU N TAN T IN B US INES S
 
126 
KA P LA N P UBL I SH IN G 
22 
B – FALSE 
‘Shared services’ typically involves streamlining operations in order to reduce costs. It will 
also involve improving consistency over the way the service is undertaken and often leads 
to the service charging the other parts of the business to use its resources (i.e. it is run like a 
business). 
23 B 
Strategic planning involves making plans for the whole business, such as which locations to 
open, which markets to enter or exit and whether to raise cash from investors. As such, 
Stark’s decision would fall into this category. 
24 A 
Operational planning involves practical, day-to-day strategies. As such, junior management 
would be best placed to undertake this level of planning. 
25 C 
This would normally be the function of the marketing department. 
26 
A – TRUE 
‘Place’ involves where the business sells its goods. For a high-street retailer this would be 
their stores. For an online retailer, it is more likely to be their website. 
27 B 
This is a philosophy of business that permeates all areas, focusing attention on the 
customer.
A = a sales orientation. 
28 B 
The basic mix tends to be used by organisations selling a tangible product (as opposed to a 
service). 
29 D 
While the 4Ps are product, place, promotion and price, don’t forget that there are other 
elements that have subsequently been added to the marketing mix. These are people, 
processes and physical evidence.