[BT/F1: Tài liệu ôn thi] Session 1

Session 1 sẽ ôn lại 4 dạng bài tập quan trọng môn Business and Technology (F1) với chủ đề The business organizations và External analysis.

I. Tổng quan:

Topic	Question types	Question index
		MCQ
The business organizations	1. The business organization types & purposes	1 - 3
	2. Stakeholders in business organizations	4 - 6
External analysis	1. Political and legal factors	7 - 13
	2. Economic factors	14 - 20
Reference: BPP ACCA F1 - Business and Technology StudyText

II. Dạng bài tập chi tiết

1.Topic 1: The business organizations

1.1. Type 1: The business organization types & purposes

Ref: Tóm tắt kiến thức Type 1: The business organization types & purposes

Importance: Average

Question 1: Which of the following is NOT a key feature of an organization? A.      Controlled performance B.      Collective goals C.      Social arrangements D.     Creation of a product or service

Guidance:

Remember the definition of organizations: “Organisations are social arrangements for the controlled performance of collective goals” 

Answer: D

Three key aspects of the definition of organizations:

• Collective goals →  Answer B
• Social arrangements →  Answer C
• Controlled performance →  Answer A

Therefore answer D is incorrect, as it may be included in “collective goals” but can not be represented as a key feature of an organization.

Organizations do not have to create a product or service in order to be classified as an organization. For example, a football team may be classed as an organization, but it does not necessarily create a product.

Question 2: Which of the following statements regarding limited companies is correct? A.      Public limited companies have access to a wider pool of finance than partnerships or sole traders B.      Both public and private limited companies are allowed to sell shares to the public C.      Companies are always owned by many different investors D.     Shareholders are liable for any debts the company may incur

Guidance:

Remind of the definition of limited companies: a company has a separate legal identity to its owners (who are known as shareholders). The owner’s liability is limited to the amount they have invested into the company.

There are two types of limited company:

• Private limited companies – these tend to be smaller businesses, often owned by a few shareholders. Shares cannot be offered to the general public.
• Public limited companies – these can be much larger businesses. Shares can be offered to the general public, meaning that there can be millions of different shareholders. This makes it easier for the company to raise finance, enabling further growth.

Answer: A

• Option A is correct. As public limited companies are able to sell their shares to the public, they will often find it easier to raise large amounts of capital for growth, if needed. This may be much harder for partnerships and sole traders.
• Option B is incorrect. Only public companies can sell shares to the public.
• Option C is incorrect. Companies may be owned by only one shareholder.
• Option D is incorrect. Shareholders enjoy limited liability.

Question 3: A Co is a company that specializes in forestry. It has recently purchased B Co, which runs a chain of recreational resorts. A has allowed B to build several new resorts on land which is owned by A, but which it is no longer able to use. The resorts have proven highly profitable and popular. Which of the following best explains the reason for the improved performance of the combined entity? A.      Specialisation B.      Social interactivity C.      Synergy D.     Service

Guidance:

Remind of the reasons that people need organizations or what organizations will enable people to do: organizations can achieve more than individuals could on their own.

Answer: C

This is the definition of the term ‘synergy’ (where organizations can achieve more than individuals could on their own). Note that organizations may also allow specialization, meaning that individuals can focus on becoming highly skilled in just one area.

1.2. Type 2: Stakeholders in business organizations

Ref: Tóm tắt kiến thức Type 2: Stakeholders in business organizations

Importance: Average

Question 4: Employees are ______ stakeholders, while finance providers are _______ stakeholders. Which two words fill the gaps in the above sentence? A.      Internal, Connected B.      External, Internal C.      Connected, Outsiders D.     Internal, Suppliers

 Guidance:

Remind of the differences between internal, external, and connected stakeholders:

Types of stakeholders	Characteristics
Internal	Stakeholders that are within the organization itself. Their objectives are likely to have a strong influence on how it is run.
Connected	Stakeholders either invest in or have dealings with the firm.
External	Stakeholders do not have a direct link to the organization but can influence or be influenced by its activities.

 Answer: A

• Employees are within the organization and care about its performance à Internal stakeholders
• Finance providers invest in the organization à connected stakeholders

Question 5: A is a large company whose shares are owned by a large number of individual investors, who do not wish to engage with the company’s decision-making despite having full rights to do so. When using Mendelow’s matrix this stakeholder group would be classed as: A.      Minimal effort B.      Keep informed C.      Keep satisfied D.     Key players

 Guidance:

Remind of Mendelow’s power-interest matrix:

		Level of interest
		Low	High
Level of power	Low	Minimal effort	Keep informed
	High	Keep satisfied	Key players

Answer: C

In this case, A’s shareholders have a high level of power, but a low level of interest.

Question 6: A plc has a large number of shareholders. The largest is H, a pension company. H owns 35% of A’s share capital. None of the other shareholders own more than 10% of the share capital each. H has stated that it is happy with A’s strategy and dividends and has no intention of intervening in A. If A prepares Mendelow’s matrix, which quadrant would H fall into? A.      Minimal effort B.      Keep informed C.      Keep satisfied D.     Key player

 Guidance:

Remind of the Mendelow’s power-interest matrix:

		Level of interest
		Low	High
Level of power	Low	Minimal effort	Keep informed
	High	Keep satisfied	Key players

 Answer: C

H has comparatively high power due to its large number of shares à High level of power

However, it has expressed a low level of interest in the running of A. This means that A’s directors should work to keep H from taking an active interest in the future → Low level of interest

→ Keep the satisfied corner

2. Topic 2: External analysis

2.1. Type 1: Political and legal factors

Ref: Tóm tắt kiến thức Type 1: Political and legal factors

Question 7: Under typical employment protection legislation, which of the following would be classified as an ‘unfair’ reason for the dismissal of an employee? A.      The employee was a member of a trade union B.      The employee was guilty of misconduct C.      The employee’s job became redundant D.     The employee had a lack of qualifications or capability for the job

Guidance:

Remember of the fair reasons for dismissal:

• Lack of capability or qualifications
• Guilty of misconduct
• Redundancy
• Legal reasons

If any reasons from the question do not lie within these ‘fair’ reasons, it should be ‘unfair’ reasons for dismissal.

Answer: A

Options B, C, D are the reasons which are mentioned above.

Question 8: Which of the following is one of the rights of individuals under typical data protection legislation? A.      Immediate access to personal data at any time B.      The right to erase personal information through an application to the data holder C.      No decisions should be taken against an individual on a purely automated basis D.     The right to prevent data from being processed for the profit of others

 Guidance:

Refer to the lectures for some rights covered by the data protection. Be careful to the options which seem to be correct.

 Answer: C

• Option A is incorrect. While individuals have the right to access their personal data, this may involve a written request being made and the payment of a fee – this is unlikely to happen instantly.
• Option B is incorrect. Application for the erasure of data may have to be through the courts.
• Option D is incorrect. Data processing can only be prevented if it will cause damage or distress to the individual or is for the purposes of direct marketing.

Question 9: ___________ ___________ is concerned with keeping data safe from various hazards that could destroy or compromise it. Which two words complete this definition? A.      Data protection B.      Data security C.      Physical risk D.     Human risk

 Answer: B

By definition. Options C and D are both types of data security risks.

Question 10: Consider the following statements: (I)               Employers have the sole responsibility for the health and safety of their employees. (ii)               As long as employers have adequately trained their staff about the potential hazards they will face in the workplace, they have discharged the health and safety responsibilities. Which of these statements is/are correct? A.      (i) only B.      (ii) only C.      Both D.     Neither

 Guidance:

Remind that in terms of health and safety in the workplace, both employers and employees have different responsibilities.

Be careful to consider whether the responsibility is ended after adequately training (i.e., statement ii)

Answer: D

• (i) is incorrect. Employees also have responsibilities under health and safety legislation.
• (ii) is incorrect. Employers also have to provide a safe working environment for employees – not just train them about the hazards.

Question 11: Which of the following is NOT a typical requirement of consumer rights legislation? A.      The seller must have legal title to the goods being sold B.      Goods sold must be fit for purpose C.      Item descriptions must be accurate D.     Goods must be reasonably priced

 Guidance:

Remember the key principles of consumer rights legislation in terms of goods:

• The seller must have legal title or ownership of the items.
• The goods sold must be of satisfactory quality and fit for their intended purpose.
• When a buyer makes a purchase based on the description of an item, the goods must correspond with this description.
• When digital content (e.g., online films, games, e-books) is faulty, consumers are given a clear right to repair or replacement.

Be careful of any answer that seems to be correct, which may be right in terms of services.

 Answer: D

Goods would not typically have to be reasonably priced, which services would be.

Options A, B, C match with the key principles mentioned above.

Question 12: Consider the following statements: (1)    All contracts must be signed by all relevant parties in order to be binding. (2)    Consumer legislation typically only covers purchases of goods. Which of these statements is/are correct? A.      (1) only B.      (2) only C.      Both D.     Neither

Guidance:

Be cautious of the different types of contract, whether they need to be signed to be valid, in terms of (1).

Consider what aspects the legislation covers, in terms of (2).

Answer: D

• (1) is incorrect. Simple contracts can be verbal, or even implied by the actions of one of the parties.
• (2) is incorrect. Consumer legislation often also covers the provision of services rather than goods only.

Question 13: Sarah is a manager at V company. As part of her contract with V, she is not supposed to hire any employees who are female or over the age of thirty-five. This contract is subsequently found to be unenforceable. Which of the features of a simple contract is missing from this agreement? A.      Agreement B.      Legality C.      Consideration D.     Capacity

 Guidance:

Remind of the simple contract’s features to be valid:

• Agreement: the parties must have agreed on the terms of the contract
• Consideration: each party must offer some consideration to the other
• Intention to create legal relations: both parties must clearly intend their relationship to be legally binding
• Capacity and legality: each party to the contract must have the capability to enter the contract and must not for illegal purposes

 Answer: B

This contract involves discriminating against some potential employees, which is illegal in most jurisdictions. Remember that a contract is not valid if it requires one or more parties to break the law.

2.2. Type 2: Economic factors

Ref: Tóm tắt kiến thức Type 2: Economic factors

Importance: High

Question 14: Consider the following statements: (1)    ‘Equilibrium’ is the selling price above which the number of units demanded by the market starts to decline. (2)    As the selling price of a product increases, the number of units supplied by the market will also tend to rise. Which of these statements is/are correct? A.      (1) only B.      (2) only C.      Both D.     Neither

 Guidance:

Statement (1):

Statement (2):

Answer: B

• (1) is incorrect. Equilibrium is the selling price at which supply exactly equals demand.

The number of units demanded by the market will usually fall as the price rises (as per the demand curve) – this is nothing to do with the equilibrium point itself.

• (2) is correct, as stated in the diagram above.

Question 15: Which one of the following would NOT lead to a shift in the demand curve for overseas holidays? A.      An advertising campaign by holiday-tour operators B.      A fall in the disposable income of consumers C.      A rise in the price of domestic holidays D.     A rise in the exchange rate for the domestic currency

 Guidance:

Remember the distinctions between expansion/contraction in demand and increase/decrease in demand:

• Changes in price → movement along with the demand curve à Expansion/contraction in demand
• Changes in conditions of demand → shift the demand curve à Increase/decrease in demand. Conditions of demand include:
  • Income changes
  • Taste changes
  • The price of other complement or substitute goods
  • Population increases/decreases

Note that the question mentions the overseas holidays, be careful with option C, which is a case of domestic holidays.

Answer: D

• Option D is correct. This changes the price of foreign holidays and leads to a movement along the demand curve, not a shift in the
• Option A is incorrect. This may change the taste of traveling overseas, which further shifts the demand curve.
• Option B is incorrect. This change of income may affect the consumers’ demand, which results in a shift in the demand curve.
• Option C is incorrect. Domestic holidays are considered as ‘substitutes goods’ for overseas holidays. Changes in substitutes’ prices should shift the demand curve because their effects on demand are significant.

Question 16: Which of the following is NOT a factor that affects the price elasticity of demand? A.      The amount of customer income spent on the item B.      Duration of the price change C.      The necessity of the item to consumers D.     The initial number of units demanded

 Guidance:

Remind of some factors which determine the price elasticity of demand:

• Proportion of income spent on the good
• Availability of substitutes
• Demand for necessities
• Habit of purchasing
• Duration of changes in price
• Definition of market

Answer: D

Options A, B, C match with the factors mentioned above.

Question 17: G Co increases the selling price of its only product, the GF1000 by 5%. This causes a reduction in the number of units it sells by 8%. Is the GF1000’s price elasticity of demand likely to be: A.      Less than 1 B.      Equal to 1 C.      Greater than 1 D.     Negative

 Guidance:

Remind of the meaning of price elasticity: to explains the responsiveness of demand to changes in price. Therefore:

• If changes in quantity demanded are larger than changes in price à Price elasticity
• If changes in quantity demanded are smaller than changes in price à Price inelasticity

Note that in this kind of question, it is not necessary to calculate the exact amount of price elasticity. Instead, students should focus on how the changes in demand correspond to changes in price, due to the above explanations.

Answer: C

The fact that the units sold fall by more than the price increase (8% compared to 5%) indicates that this product is relatively elastic. This would give a PED of more than 1.

Question 18: L makes a variety of different products, including windows. Which TWO of the following would cause a decrease in the level of supply of L’s windows? A.      An increase in the level of VAT charged by the government on windows B.      A new automated assembly system for L’s products that reduces L’s window manufacturing overheads C.      Staff negotiations, leading to window production staff adopting a shift‐work approach which makes better use of L’s production facilities D.     Staff negotiations, leading to a slight rise in the hourly rate paid to window production workers

 Guidance:

Remember: Upwards shifts/decreases in the supply curve are caused by increases in the costs of making and/or selling the product.

→ Look for the circumstances which increase the costs of producing L.

Answer: A, D

• Options A, D are correct. Increasing VAT of windows and hourly wages means increasing the total costs of producing windows. → Upward shift in the curve.
• Options B and C are incorrect. Reducing overheads and better uses of production facilities will lead to a decline in the total costs of production of the windows → Downward shift in the curve.

Question 19: Which of the following is NOT a characteristic of a perfect market? A.      Large numbers of customers and suppliers B.      All suppliers provide a wide range of products and services C.      There is perfect information for customers and suppliers D.     There are no entry or exit barriers to the market

 Guidance:

Refers to the perfect markets’ criteria in the lectures.

Answer: B

The opposite of option B is true – perfect markets assume that all goods sold by suppliers are homogenous (identical).

Question 20: Which of the following is a feature of monopolistic competition? A.      Few competitors in the market B.      Undifferentiated products C.      No major barriers to entry to or exit from the market D.     Low advertising expenditure

 Guidance:

Be careful to mismatch between monopoly and monopolistic competition.

Remind of the definition of monopolistic competition: when a business has many different competitors, but each offers a somewhat differentiated product.

Answer: C

• Option A is incorrect, as monopolistic competition consists of many competitors.
• Option B is incorrect, as monopolistic competition consists of differentiated products.
• Option D is incorrect, as due to the large amount of competition in the market, there is typically significant advertising expenditure by all the businesses in the market.