Which one of the following is the predominant form of business entity?
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1 .Porter’s five forces collectively determine, for a single company, which one of thefollowing?
A The degree of competition new entrants will face B The profitability of existing firms in the industry C The overall growth of the industry D The overall profit potential of the industry
2 .Shareholders may be considered as which type of stakeholder?
A Conflict B External C Internal D Connected
3 .Which of the following best describes the role of a standing committee within anorganisation?
A To complete a particular task B To perform a particular role on a permanent basis C To review the organisation’s internal controls and governance procedures D To monitor the compensation policies of the entity
4 .“I am sorry. As a professional accountant I am bound by my code of ethics to report thismatter to the authorities. Even if I were not a professional accountant, I would consider it mymoral duty to deal with this matter, by going to the police.”What ethical approach is being taken?
A Meta-ethics B Relativism C Instrumentalist D Deontological
5 .Which of the following would cause an auditor to modify (qualify) their opinion on a setof financial statements?
A A material error has not been corrected B Material errors were found, but adjusted C No approval of the financial statements has been made by the directors D They show a true and fair view
7 .The books and records of a company contain many forms of documentation, including:(i) Purchase day book(ii) Sales day book(iii) The journal(iv) Cash book(v) Non-current asset register(vi) General ledger.Which of the above are books of prime entry?
A i, ii, iii and iv B iii, iv, v and vi C i, ii, v and vi D All of them
8 .Which of the following best summarises the purpose of organisational controls?
A To carry out the directions of management, safeguard the assets and ensure thefinancial statements are correctly audited B To ensure business processes are efficient and effective, to prevent errors andfraud and safeguard the assets of the entity C To ensure correct processing of transactions, acc...
9 .Marketing is mainly concerned with which one of the following?
A Increasing sales revenue B Streamlining production C Anticipating and meeting customer needs D Maximising profit.
10 .Unemployment may arise due to a permanent reduction in demand for the products suppliedby a single industry or group of industries with traditionally large workforces.Which of the following describes this type of unemployment?
A Frictional B Structural C Cyclical D Seasonal
