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

(2 marks)
19 
Sansa Co is planning to outsource all of its functions to third party suppliers – even those 
that it feels are core activities which give the company competitive advantage in the market 
place.
Which boundaryless structure is Sansa planning to adopt? 
A Virtual 
B Hollow 
(1 mark)
20 
Arya manufactures motor vehicles. She has recently decided to stop the manufacturing of 
car windows and, instead, will buy the windows ready-made from an external supplier. The 
remaining components of the motor vehicles will continue to be made by Arya.
Which of the following structural concepts does Arya’s plan most closely match? 
A Virtual 
organisation 
B 
Shared service agreement 
C Matrix 
structure 
D Modular 
structure 
(2 marks)
21 
Offshoring refers to the transfer of existing staff members to other countries with lower 
wage rates.
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
22 
Adopting a shared services approach refers to the centralisation of an internal service 
within the organisation. The operations of the internal service will be unaffected. 
Is this statement TRUE or FALSE? 
A True 
B False 
(1 mark)
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
6
KA P LA N P UBL I SH IN G 
23 
Stark Limited is a company that currently manufactures metal tubing. It has recently 
decided to open a series of new manufacturing plants within country H which it believes 
will help it to break into the European market.