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 ) :
AC COU N TAN T IN B US INES S
 
188 
KA P LA N P UBL I SH IN G 
(iv) 
Select which ONE of the following fills Gap 2: 
A Elasticity 
B Tastes 
C Price 
D Quantity 
Required: 
Write down which two of the above indicate a low threat of new entrants by 
selecting TWO of the letters from (A, B, C, D, E, F, and G). 
(2 marks) 
(Total: 4 marks) 
5
 
Below is information on four different companies. 
Company 1 
enjoys very rapid decision making, but there are extremely limited 
opportunities for staff members to gain promotions, which many employees find de-
motivating. 
Company 2
has a highly flexible structure, but dual command has led to conflict between 
managers who have overlapping authority. 
Company 3
enjoys significant economies of scale, but cannot easily cope with 
diversification into new products or markets. 
Company 4
is split into several strategic business units – each related to a particular 
product that the company makes. While this has allowed the company to diversify, it has 
led to a lack of overall goal congruence within the company. 
The following are organisational structures: 
A Divisional 
B Geographic 
C Hollow 
D Entrepreneurial 
E Matrix 
F Functional 
G Boundaryless 
H Modular 
Required: 
(i) 
For Company 1 select which ONE structure applies from the list above (A-H) 
(ii) 
For Company 2 select which ONE structure applies from the list above (A-H) 
(iii) For Company 3 select which ONE structure applies from the list above (A-H) 
(iv) 
For Company 4 select which ONE structure applies from the list above (A-H)