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

(2 marks)
10 
Consider the following statement: 
Charities would usually be classified as a type of non-governmental organisation (NGO) 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
BUSINESS ORGANISATION AND STRUCTURE
11 
Which of the following statements regarding the entrepreneurial structure is correct? 
A 
It usually allows for defined career paths for employees 
B 
It often enjoys strong goal congruence throughout the organisation 
C 
It can normally cope with significant diversification and growth 
D 
Control within the organisation tends to be weak 
(2 marks)
12 
Which of the following is a disadvantage of a functional structure? 
A 
Lack of economies of scale 
B 
Absence of standardisation 
C 
Specialists feel isolated 
D Empire 
building 
(2 marks)
13 
P Co is a company that makes a single product. It has very standardised ways of 
manufacturing this product which are used in all its factories. There are many rules and 
procedures to follow. Identify which one of the following structural configurations (as 
popularised by Mintzberg) P most closely conforms to.
A Professional 
bureaucracy 
B Divisional 
C Machine 
bureaucracy 
D Simple 
(2 marks)
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
4
KA P LA N P UBL I SH IN G 
14 
H Co makes a variety of unrelated products, including bicycles, furniture and electronics. It 
is aware that each of these products requires very different strategies and functions. H 
wishes to use a structure that will allow for each product to be managed separately, but 
wishes to minimise its overall administrative costs.