Tag: Profit Making

Accounting Multiple Choice Question – 21 July 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which THRE of the following are characteristics of limited companies?

A Perpetual succession
B Separate legal personality
C Financial statements can remain private
D Simple withdrawal of capital
E Regulation under the Companies Act 2006
F The company’s liability is limited

Select ONE answer:

  1. ABC
  2. ABD
  3. ABE
  4. ABF

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct –> If a shareholder dies their shares are transferred to another person without any effect on the company at all – this is known as ‘perpetual succession’ (A). A limited company is legally distinct from its owners- it has a separate legal identity (B). Limited companies, both private and public, are subject to stringent regulations governing the keeping of accounting records, the filing of financial statements and the annual return with the Registrar and, in the case of large companies, the requirement to have an audit (E).
  4. Not correct

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Accounting Multiple Choice Question – 20 July 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Computing Ltd adopts a wide, flat organisational structure.

Which of the following is Alex Computing Ltd likely to encounter problems?

Select ONE answer:

  1. Ensuring enough face-to-face contact takes place between superiors and staff members
  2. High management overhead costs
  3. Internal communication
  4. Superiors not delegating enough work to staff

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct –> – If there are many subordinates to supervise, there would be in a wide, flat organisation, it can be difficult to give each employee enough individual time. High management overhead costs (2), internal communication difficulties (3) and superiors not delegating enough work to staff (4) are problems associated with tall, narrow organisational structures.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 19 July 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In terms of structure, Alex plc is a wide, flat organisation.

Which THREE of the following characteristics is the company most likely to exhibit?

  • A Greater need to delegate
  • B Higher administration and overhead costs
  • C Many opportunities for promotion
  • D Better communication between the strategic apex and operating core
  • E Large spans of control
  • F Slow decision making

Select ONE answer:

  1. ABC
  2. ABD
  3. ABE
  4. ABF

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct-A wide, tall organisation implies looking after many subordinates, so delegation will be called upon frequently (A). The vertical flow of information between the top and bottom of the company follows a shorter, more efficient route in a wide, flat organisation (D), so communication is likely to be improved. Looking after many employees implies large spans of control (E). The features you would expect to see in a tall narrow organisation are higher administration and overhead costs(B)to support the many levels within the structure; many opportunities for promotion (C) because there are more rungs in the ladder to the top; and slow decision-making (F) because the management structure requires more co-ordination and consultation before decisions are taken.

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Accounting Multiple Choice Question – 18 July 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Lucy is a human resources manager with Alex Ltd.

She is currently working on a project designed to increase the spans of control of the managers employed by the company’s largest subsidiary.

Lucy has been asked to identify any factors about the subsidiary that might suggest that increases in spans of control are possible.

Which of the following factors identified by Lucy suggests that increased spans of control are feasible?

Select ONE answer:

  1. Subordinates carry out very similar tasks
  2. Subordinates are geographically dispersed
  3. Frequent, time-consuming problems arise
  4. Managers tend to be engaged in large amounts of non-supervisory work

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – If employees are all carrying out the same or similar tasks, a supervisor will be more able to look after many subordinates (a wider span of control) as they can all be handled in similar ways and will face similar problems.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 17 July 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Lucy who is the chief executive of Alex plc has recently been discussing problems caused by the centralised nature of the company’s decision-making processes, which have led to accusations from staff and some customers that the company is increasingly slow and unresponsive.

Lucy is keen to increase the amount of decentralised decision-making over the next year.

Which THREE of the following are likely to increase the amount of decentralisation that is possible within Alex plc?

A The company’s authoritarian management style
B The well-skilled workforce
C The company’s large size
D The slow pace of technological change in the company’s markets
E The effectiveness of communication across the company

Select ONE answer:

  1. ABC
  2. ACD
  3. BCD
  4. BCE

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct-Decentralisation depends on workforce ability (B) company size (C) – the larger the organisation, the harder it is to centralise – and effective communication (E), which is an essential ingredient of effective delegation. Centralisation and decentralisation refer to the extent to which authority for decision-making is either retained at the top of the organisation or delegated to lower levels.

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This work is licensed under a Creative Commons Attribution 4.0 International License.