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

S E CTI ON 6
K APLA N PUBLISH ING 
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12 D 
All options could influence the culture of an organisation. History and experiences allow the 
company to learn from past successes and failures, successes will be built on and failures 
not repeated. Senior management influence current objectives and ways of working. The 
person who founded the organisation establishes the basic assumptions and values of the 
organisation. The technology used and the industry both influence the way an organisation 
operates. 
13 A 
Negotiation involves coming up with a compromise where both parties get some (but not 
all) of what they want. This is likely to act as a long-term solution to a major conflict. Denial 
and suppression are both short-term solutions as they do not involve any attempt to deal 
with the root cause of the problem. 
14 A 
Job enrichment involves offering existing staff higher-level, possibly managerial level, tasks. 
This will not only help train the employee, making them more capable and therefore 
improving succession planning, but will also make them feel more valued and interested in 
their jobs, improving motivation. It is unlikely to reduce employee’s wages and could, in 
fact, eventually lead to the employee demanding higher wages to compensate them for the 
additional work they are having to undertake. 
15 A 
Its price elasticity of demand (PED) would be less than one. If a product is inelastic, the 
number of units demanded will change more slowly than the sales price. This gives a PED of 
less than 1. 
16 C 
It is good corporate governance for an internal audit department to report to the audit 
committee, which should consist of non-executive directors, in order to increase their 
independence.
17 B 
By definition. Note that C is redundancy. 
18 A 
Porter’s five forces model identified the following factors that determine the attractiveness 
of an industry: 
•
Bargaining power of buyers 
•
Bargaining power of suppliers 
•
Competitive 
rivalry 
•
New entrants to the industry 
•
Substitute products or services
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