Download ICAEW BTF Exam Recap: Key Concepts and Correct Answers 2025/2026 and more Exams Nursing in PDF only on Docsity!
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,vtakesv 3 - 4 vdays 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
