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ICAEW BTF - Memory Recap with
correct answers 2025/
Porter'sv 5 vforcesvmodel,vwhatvisvthevpurposevandvwhatvarevthevelements?v-vcorrectvanswers- Analysesvthevcompetitivevaspectvofvthevtaskvenvironment:
- vBargainingvpowervofvsuppliers
- vThreatvofvsubstitutevproductsvorvservices
- vBargainingvpowervofvcustomers
- vThreatvofvnewventrants
- vRivalryvamongvexistingvfirms
Invtermsvofvthevmanagementvprocess,vwhatvdoesvleadingvinvolve?v-vcorrectvanswers- Concernedvwithvgeneratingveffortvandvcommitmentvtowardsvmeetingvobjectives
Whatvarevthevdifferentvtypesvofvpowervandvtheirvmeaning?v-vcorrectvanswers-Coercivev- vphysicalvforcevorvpowervofvpunishment
Rewardv-ve.g.vpowervtovpayvyou
Legitimatev-vassociatedvwithvavparticularvposition
Expertv-vfromvknowingvlots
Referentv-vthroughvcharisma/charm
Negativev-vpowervtovdisruptvoperations
Whatvarevdifferentvtypesvofvmanager?v-vcorrectvanswers-Linevmanagerv-vtraditionalvboss
Staffvmanagerv-vnovactualvpower,vhasvpowervthroughvgivingvadvicev(e.g.vHR)
Functionalvmanagerv- vbestvexamplevisvIT,vhybridvofvlinevandvstaffvmanagerv(hasvrealvpowervinvsomevcircumstances)
Projectvmanagerv-vhasvpowervovervavparticularvproject/thingsvthatvhappenvinvavcertainvcontext
Wouldvavdrivervmislayingvavtabletvcontainingvsensitivevinformationvconstitutevavcybervrisk?v- vcorrectvanswers- Potentiallyvyes,vcybervriskvalsovencompassesvoperationalvITvrisksvduevtovpoorvsystemsvintegrityvsovi fvthevdatavwouldvbevaccessiblevthenvthisvcouldvbevavcybervrisk
WhatvarevMintzberg'sv 5 vbasicvcomponentsvofvanvorganisation,vandvwhatvdovtheyvdo?v- vcorrectvanswers-Technostructure:vdesignsvsystemsvandvstandardisesvwork
Strategicvapex:vthosevatvthevtopv(board,vetc.)
Middlevline:vmiddlevmanagement
Operatingvcore:vfrontvlinevworkers
Supportvstaff:vcleaning,vcatering,vetc.
WhatvarevthevCATIVAvcriteriavforvgoodvinformationvprocessing?
Whatvarevthevkeyvfeaturesvofvanvorganisation?v-vcorrectvanswers- Socialvarrangementvthatvpursuesvcollectivevgoals,vcontrolsvitsvownvperformance,vandvhasvavbound aryvseparatingvitvfromvitsvenvironment
WhatvarevMintzberg'sv 5 vPsvofvstrategy?v-vcorrectvanswers-Planv-vforvexamplevavbudget
Ployv-vlikevavmanoeuvrevinvavcompetitivevgame
Patternv-vsomethingvyouvtendvtovdo
Positionv-vmatchingvinternalvandvexternalvfactors
Perspectivev-vwhatvisvyourvattitudevtovthevenvironment?
Whatvarevthevstagesvofvthevrationalvplanningvmodel?v-vcorrectvanswers- SWOTvanalysisv(internalvandvexternal)
Corporatevappraisal
Mission,vgoalsvandvobjectives
GAPv(differencevbetweenvthevappraisalvandvthevmission)
Strategicvchoice
Implementationv-->vreviewvandvcontrolv(feedbackvloop)
Whatvisvcostvleadership,vdifferentiation,vandvfocuses?v-vcorrectvanswers- Costvleadershipvsimplyvaboutvproducingvatvthevlowestvcostvinvthevindustryvasvavwholev(notevthatvno tvnecessarilyvchargingvthevlowestvprices
Differentiationvaboutvprovidingvavproductvorvservicevthatvthevindustryvbelievesvtovbevunique
Focus/nichevmeansvrestrictingvactivitiesvtovonevsectionvofvthevmarketv(canvhavevbothvavcostvfocusv nichevandvdifferentiationvniche)
WhenvwouldvwevusevavSWOTvanalysis?v-vcorrectvanswers-Atvthevcorporatevappraisalvstage
Whatvisvriskvexposure?v-vcorrectvanswers- Simplyvavmeasurevofvthevwayvavbusinessvisvfacedvbyvrisks,vwhethervfinancial/business/etc.
Whatvarevthevfundamentalvandvenhancingvqualitativevcharacteristicsvofvfinancialvreporting?v- vcorrectvanswers-Fundamental:vrelevancevandvfaithfulnessvofvrepresentation
Enhancing:vunderstandability,vcomparability,vverifiabilityvandvtimeliness
Whatvisvtacticalvinformation?vWhatvaboutvoperational,vstrategic,vandvplanning?v-vcorrectvanswers- Helpsvdealvwithvshort-termvissuesvandvopportunities.vOperationalvisvtovdovwithvthevday-to- day,vstrategicvinformationvhasvlongervtermvconcerns,vandvplanningvinformationvisvexplicitlyvtovdovw ithvplans.
Whenvwouldvwevlikevtovusevavmanagementvinformationvsystem?v-vcorrectvanswers- TovhelpvusvmakevSTRUCTUREDvdecisions.vThesevcanvbevreducedvtovavseriesvofvrulesvwhich,vifvfollow ed,vwillvleadvtovthevcorrectvdecisionvbeingvmade.
Whatvarevthevfactorsvforvavbalancedvscorecardvmodel?vWhatvarevsomevexamplevmetrics?v- vcorrectvanswers-Customer:vsatisfaction,vreturnsvrates,vetc.v
Internalvbusinessvprocesses:vproductvquality,vfailurevrates,vetc.
Innovationvandvlearning:vemployeevretention,vtimevtovmarketvforvnewvproducts,vetc.
Financial:vgrossvmargin,vnetvmargin,vetc.
Whatvisvavfundamentalvaccountingvprincipalvwithvregardsvtovassetsvandvliabilities?v- vcorrectvanswers-Whenvinvdoubt,vunderstatevassetsvandvoverstatevliabilities
Whatvisvavmission,vvision,vgoal,vandvplan?v-vcorrectvanswers- Missionvlaysvoutvthevpurposevofvanvorganisationv(createvvaluevforvshareholders),vasvwellvasvhowvth eyvwillvdovitvandvwhatvtheirvvaluesvare
Visionvinvolvesvsomevelementvofvlookingvforwardvtovavfuturevstate
Goalvcanvbevqualitativev(aims)vorvoperationalvandvquantitativev(objectives).vObjectivesvshouldvbevS MARTv-vspecific,vmeasurable,vachievable,vrelevantvandvtimevbound.v
Plansvstatevwhatvshouldvbevdonevtovachievevanvoperationalvobjective,vstandardsv(targets)vspecifyva vdesiredvlevelvofvperformance.
Howvdoesvdelegationvwork?v-vcorrectvanswers- Youvtransfervthevpower,vauthority,vandvresponsibility.vHowever,vthevaccountabilityvalwaysvliesvwithv thevdelegater.
Whatvarevthreevmanagementvrolesvandvexamples,vwhatvaboutvleadershipvstyles?v- vcorrectvanswers- Informationalvrolev(minister/MP),vinterpersonalvrolev(tovdovwithvcharisma),vdecisionalvrolev(morev traditionalvmanagement).
Exercisingvauthorityv(traditionalvpower),vautonomyv(givingvmorevfreedom),vleadershipv(inspiringve ffortvfromvothers,vmorevinnate).
Whatvarevexamplesvofvdifferentvbusinessvculturesv(RayvQuinn)?v-vcorrectvanswers- Humanvrelationsvculturev(inwardvlookingvandvflexible)v-vITvdepartment
Internalvprocessvculturev(inwardvlookingvandvcontrolling)v-vcallvcentre
Openvsystemsvculturev(outwardvlookingvandvflexible)v-vmediavcompany
Rationalvgoalvculturev(outwardvlookingvandvcontrolling)v-vsupermarket
WhatvarevthevimplicationsvofvTaylorismvforvorganisationalvmanagement?v-vcorrectvanswers- Mainvmotivatorvisvhighvwages
Managersvjobvisvjustvtovtellvpeoplevwhatvtovdo
Workersvjobsvarevtovdovwhatvtheyvarevtoldvandvgetvpaid
Essentiallyvpeoplevarevlikevmachines!
WhatvarevHerzberg'svmotivatingvfactors?vHowvdovtheyvrelatevtovthevMaslowvhierarchyvofvneeds?v- vcorrectvanswers- Hygienevfactorsvarevlikevatvthevbottomvofvthevhierarchy,vifvtheyvarevabsentvtheyvwillvdemotivate.vM otivatingvfactorsvarevtowardsvthevtop,vthesevarevrequiredvforvpositivevmotivation.v
Hygienevfactorvisvlikevhealthvandvsafety,vmotivatingvfactorvisvlikevavsensevofvachievement.
Whatvarevstagesvofvgroupvformation?v-vcorrectvanswers-Forming,vstorming,vnorming,vperforming
WhatvarevBelbin'svreamvroles?v-vcorrectvanswers-Leaderv-vlikevavstrategist,vnotvimposing
Shaperv-vlikevavdeputy,vmayvbevaggressivevandvchallenging
Plantv-vthoughtfulvandvthoughtvprovokingv-vplantsvseedsvandvideas
Evaluatorv-vthevsanityvcheck
Resourcevinvestigatorv-vactsvasvbridgevtovoutsidevworld
Pullv-ve.g.vadvertisingv(persuadevthevultimatevcustomervtovbuy)
Whatvarevthevadditionalv 3 vPsvofvthevservicesvmarketingvmix?v-vcorrectvanswers- People,vProcesses,vPhysicalvevidence
Whatvarev 3 vtypesvofvresearch?v-vcorrectvanswers-Purevresearch
Appliedvresearch
Development
WhatvarevMintzberg'sv 6 vbuildingvblocksvofvorganisationalvdevelopment?vWithvexamplesv- vcorrectvanswers-Strategicvapexv-vgenerallyvthevboard
Middlevlinev-vmiddlevmanagement
Operatingvcorev-vworkers
Technostructurev-vstandardisevprocessesvandvdocumentv(e.g.vHR)
Supportvstaffv-vcleaning,vcatering,vetc.
HowvcanvwevrelatevMintzberg'svbuildingvblocksvtovtypesvofvbusinessvstructurevandvthevexternalvenv ironment?v-vcorrectvanswers-Strategicvapexv-vsimple/entrepreneurialv-vstrategicvapex
Technostructurev-vsimplevstaticv-vmachinevbureaucracyv(government)
Operatingvcorev-vcomplexvstaticv-vprofessionalvbureaucracyv(bigv4)
Middlevlinev-vsimple/static/diversev-vdivisionalised
Operatingvcorev-vcomplexvdynamicv-vAdhocracy/innovative
Whatvisvthevmatrixvbusinessvstructure?v-vcorrectvanswers-Suitablevforvcomplex/high- techvindustries.vFlexiblevstructurevthatvisveasyvtovrearrange.vDifferentvleadsvforvdifferentvprojectsv- vlatticevstructure.vCanvleadvtovconflictingvdemandsvonvstaffvtime/allocation.
Whatvisvthevspanvofvcontrol?vWhatvarevtallvandvflatvbusinesses?
Whatvarevthreevcharacteristicsvavwidevandvflatvorganisationvarevlikelyvtovexhibit?v-vcorrectvanswers- Thevnumbervofvpeoplevreportingvtovonevperson.vBusinessesvthatvarevtallvgenerallyvhavevavnarrowvs panvofvcontrol,vthosevthatvarevflatvgenerallyvhavevwidevspansvofvcontrol.v
Tallvbusinessesvincludevhospitals,vflatvbusinessesvmightvbevanveditorialvteamvatvavnewspaper.
Greatervneedvtovdelegate,vbettervcommunicationvbetweenvstrategicvapexvandvoperatingvcore,vlarg evspansvofvcontrol.
Whatvarevmechanisticvandvorganicvstructures?v-vcorrectvanswers- Mechanisticvstructuresvarevlikevbureaucracies,vlargevtechnostructurevandvstandardisation.v
Organicvorganisationsvlikevavcombinationvbetweenvadhocracyvandvprofessionalvbureaucracy.vGood vexamplevisvgoogle,vcommittedvandvcompetentvstaffvwithvsharedvvaluesvandvculture.
WhatvarevMintzberg'sv 5 vPsvofvstrategy?vWhatvarev 3 vlevelsvofvstrategy?v-vcorrectvanswers-Planv- ve.g.vavbudget
Ployv-vtactics
Patternv-vconsistencyvofvbehaviour
Positionv-vhowvbusinessvrelatesvtovitsvenvironment
Perspectivev-vattitude/wayvofvlookingvatvthevworld
- vstochasticv(unpredictable)
Whatvarevthev 9 vMsvofvavtypicalvresourcevaudit?v-vcorrectvanswers-Machinery
Make-up
Management
MI
Markets
Materials
Men
Methods
Money
AnalysingvPorter'svvaluevchain,vwhatvarevprimaryvactivitiesvandvsupportingvactivities?v- vcorrectvanswers- Primaryvactivitiesv(inboundvlogistics,voperations,voutboundvlogistics,vmarketingvandvsales,vservice)
Supportingvactivitiesv(firmvinfrastructure,vhumanvresourcevmanagement,vtechnologyvdevelopmen t,vprocurement)
WhatvisvthevBCGvmatrix,vwhatvshouldvavcompanyvdovinveachvquadrant?v-vcorrectvanswers- Lowvmarketvsharevandvhighvgrowthv-vquestionvmark.vShouldvharvestvorvbuild.
Highvmarketvsharevandvhighvgrowthv-vstar.vShouldvbuild.
Highvmarketvsharevbutvlowvgrowthv-vcashvcow.vShouldvholdvorvharvest.
Lowvmarketvsharevandvlowvgrowthv-vdog.vShouldvholdvorvdivest.
Howvcanvwevanalysevstakeholdersvattention?v-vcorrectvanswers- Levelvofvinterestvhighvandvpowervheldvhighv- vthesevarevkeyvplayers,ve.g.vthevfunders.vCarevlotsvaboutvthesevpeople.
Levelvofvinterestvhighvbutvpowervlowv- vthisvmightvbevthevpublic.vPerhapsvwevkeepvthemvinformedvbutvtheyvcan'tvnecessarilyvhurtvus.v
Levelvofvpowervhighvbutvlevelvofvinterestvlowv- vthisvmightvbevthevregulator.vWevbasicallyvdon'tvwantvtovmessvthingsvupvwithvthem.
Levelvofvinterestvlowvandvlevelvofvpowervlowv-vwevdon'tvcare!
WhatvarevPorter'svthreevgenericvcompetitivevstrategies?v-vcorrectvanswers- Costvleadership:vproducingvatvthevlowestvcostvinvthevindustry
Differentiation:vprovisionvofvavproductvorvservicevthatvthevindustryvbelievesvtovbevunique
Focusv(orvniche):vrestrictvactivitiesvtovonevsectionvofvthevmarket.vCanvhavevavcostvfocusvnichevorvdiff erentiationvniche.
WhatvisvAnsoff'svmatrixvofvproduct/marketvstrategiesvforvgrowth?v-vcorrectvanswers- Existingvproductvinvanvexistingvmarketv-vmarketvpenetration
Newvproductvinvanvexistingvmarketv-vproductvdevelopment
Newvmarketvforvanvexistingvproductv-vmarketvdevelopment
Lowvprobabilityvbutvhighvimpactv-vsharingv(transfervthroughvinsurance)
Lowvprobabilityvandvimpactv-vacceptv(dovnothing)
Whatvarevkeyvdifferencesvbetweenvcrisesvandvdisasters?v-vcorrectvanswers- Avcrisisvimpactsvonvcustomers,vemployeesvandvothervstakeholders,vitvthereforevimpactsvexternally. vCanvhavevavfinancialvcrisisv(govbust),vPRvcrisisv(majorvcock-up),vorvstrategicvcrisisv(outvofvtouch).
Byvcontrast,vdisastervtypicallyvdoesn'tvhavevavdirectvimpactvonvstakeholders.vDisastersvcanvleadvtov avcrisisvifvleftvunchecked.vAvgoodvexamplevmightvbevavfirevatvanvofficevorvfactory.vDisastersvthreatenv businessvoperationsvbutvcanvbevmitigatedvwithvgoodvcontingencyvplanning.
Whatvarevthevkeyvcharacteristicsvofvgoodvinformation?v-vcorrectvanswers- ACCURATE:vaccurate,vcomplete,vcost-beneficial,vuser- targeted,vrelevant,vauthoritative,vtimely,veasyvtovuse
Whatvarevthev 4 vVsvofvbigvdata?vWhichvisvuniquevtovbigvdata?v-vcorrectvanswers- Volume,vVelocity,vVariety,vVeracity
Keyvpointvisvthevvelocityvwhichvisvunique
Whatvisvthevdistinctionvbetweenvstructuredvandvunstructuredvdata?v-vcorrectvanswers- Structuredv-vobtainedvwithvavparticularvpurposevinvmindv(e.g.vsurvey)
Unstructuredv- vobtainedvwithoutvavparticularvpurposev(e.g.vcapturedvdatavfromvsmartphones,vorvuservgeneratedv datavlikevtweets)
Whatvarevthevtwovunderlyingvassumptionsvthatvfinancialvinformationvmustvbevpreparedvunder?vW hatvdoesvthevIASBvsayvarevthevkeyvqualitativevcharacteristicsvofvusefulvfinancialvstatements?v- vcorrectvanswers-Accrualsvbasisvaccountingvandvgoingvconcern.
Understandability,vrelevance,vreliability,vcomparability.
Whatvisvavmanagementvinformationvsystem?vHowvdoesvitvdiffervfromvanvinformationvmanagement vsystem?v-vcorrectvanswers- MISvconvertsvdatavfromvmainlyvinternalvsourcesvintovinformationvenablingvmanagersvtovmakevbett ervdecisions.vAnvexamplevwouldvbevmanagementvaccounts.v
Informationvmanagementvsystemsvarevmorevgeneral.
Whatvarevtypesvofvinformationvmanagementvsystemvandvtheirvuses?v-vcorrectvanswers- Executivevsupportvsystem:vpoolsvinternalvandvexternalvsources,vallowsvseniorvmanagersvmakevstrat egic,vunstructuredvdecisions.v
Decisionvsupportvsystem:vlikevanvanalyticalvmodel,ve.g.vnetvpresentvvaluevcalculation
Expertvsystem:vcapturesvhumanvexpertisevinvavlimitedvdomainvofvknowledgevtovallowvusersvtovben efit,ve.g.vcreditvratingvsystem
Knowledgevworkvsystems:vfacilitatevcreationvandvintegrationvofvnewvknowledge,ve.g.vintranet
Officevautomationvsystem:vincreasesvworkplacevproductivity,ve.g.vMicrosoftvoffice
AI:vself-learningvinformationvprocessing
Whatvarevkeyvcontrolsvforvinformationvsecurity?v-vcorrectvanswers- Physicalvaccess:vpersonnel,vdoorsvlocked,vetc.v
Howvcanvwevdistinguishvdebtvholdersvandvequityvholdersvinvtermsvofvriskvandvreturn?v- vcorrectvanswers- Debtvholdersvfacevlowervriskvbutvlowervreturnsv(debtvoftenvsecuredvbyvfixed/floatingvcharges,vrankv highervtovreceivevcapitalvback)
Equityvholdersvfacevhighervriskvbutvcanvenjoyvhighervreturns
Whatvarevkeyvbenefitsvofvfinancialvinter-mediation?v-vcorrectvanswers- Smallvamountsvdepositedvbyvsaversvcanvbevcombined.vShort- termvsavingsvcanvbevtransferredvintovlong- termvborrowings,vsearchvcostsvarevreducedvandvriskvisvspread.
Whatvarevkeyvdifferentvformsvofvmoneyvtransmission?v-vcorrectvanswers-Generalvclearingv- vmainlyvcheques,vtakesv3-4vdays
Electronicvfundsvtransferv(EFT)v-vmainlyvdebit/creditvcards
BACSv-vtypevofvEFTvthatvdealsvwithvsalaries,vstandingvorders,vdiretvdebits
CHAPSv-vsamevdayvclearingvforvlargevpayments
SWIFTv-vsimilarvtovCHAPSvbutvforvinternationalvpayments
Whatvisvavprimaryvandvsecondaryvbank?v-vcorrectvanswers- Primary:vnormalvretailvbanks.vOperatevchequevaccountsvandvdealvwithvclearing.
Secondary:vmerchantvbanks,vgenerallyvdealvinvdebt,vdovnotvtakevpartvinvclearing.
WhatvarevthevtwovbodiesvofvthevbankvofvEnglandvthatvensurevfinancialvstability?v-vcorrectvanswers- FinancialvPolicyvCommitteev- vmacroprudentialvresponsibilityvforvidentifying,vmonitoring,vandvtakingvactionvtovreducevriskv(e.g.v bankvcapital/equityvratios)
PrudentialvRegulationvAuthorityv- vsupervisevsafetyvofvregulatedvfirmsv(depositvtakingvinstitutions,vinsurersvandvinvestmentvbanks)
Whatvisvthevlegalvrelationshipvbetweenvthevbankvandvitsvcustomer?vWhatvarevthev 4 velements?v- vcorrectvanswers-Receivable/payablevrelationship
Bailor/baileevrelationship
Principal/agentvrelationshipv(cheques)
Mortgagor/mortgageevrelationship
Whatvarevsomevkeyvdutiesvandvrightsvofvthevbank?v-vcorrectvanswers- Duties:vhonourvcheques,vrepayvamountvdepositedvonvdemand,vprovidevbankvstatement,vconfiden tiality,vreasonablevnoticevofvaccountvclosure
Rights:vchargevreasonablevfees,vusevcustomersvmoneyvinvavlegalvandvmorallyvacceptablevway,vbevre paidvoverdrawnvbalancesvonvdemand,vbevindemnifiedvagainstvpossiblevlosses
Whatvarevsomevkeyvmoneyvmarketvfinancialvinstruments?v-vcorrectvanswers- Treasuryvbills:vveryvsecurevandvliquid,vbutvlowvreturns
Deposits:vslightlyvhighervriskvandvreturnvthanvtreasuryvbillsv(thoughvnotvmuch)
CDsv(certificatesvofvdeposit):vlarge,vfixedvterm,vtradable
