ACCA Pakistan Business and Technology (BT) Syllabus

How does a rise in interest rates typically affect business activity?

It raises borrowing costs and rewards saving, reducing consumer spending and business investment, thereby slowing economic activity and demand.

Name the main types of organisational structure described by Mintzberg or in basic theory.

Entrepreneurial (simple), functional, divisional (product/geographic/customer), matrix, and the boundaryless/network structure.

What is a matrix structure and one advantage and one disadvantage?

A structure where staff report to both a functional manager and a project/product manager. Advantage: flexibility and cross-functional coordination. Disadvantage: dual reporting causes conflicts of authority and confusion.

Distinguish a 'tall' organisation from a 'flat' organisation.

A tall organisation has many management levels and a narrow span of control; a flat organisation has few levels and a wide span of control.

Define 'span of control'.

The number of subordinates directly reporting to and managed by one superior/manager.

What is the difference between centralisation and decentralisation of authority?

Centralisation concentrates decision-making authority at the top of the organisation; decentralisation delegates decision-making authority downward to lower levels.

What are the four types of organisational culture in Charles Handy's model?

Power culture (web), Role culture (Greek temple/bureaucracy), Task culture (matrix/net), and Person culture (cluster/individual-focused).

What does Schein identify as the three levels of organisational culture?

Artefacts (visible structures and behaviours), espoused values (strategies, goals, philosophies), and basic underlying assumptions (taken-for-granted beliefs).

Define 'organisational culture'.

The shared values, beliefs, attitudes, norms, and behaviours that characterise an organisation - 'the way we do things around here.'

What is the difference between an executive committee and an advisory (non-executive) committee?

An executive committee has the authority to make and implement decisions; an advisory committee only investigates issues and makes recommendations, with no power to act.

List three advantages of using committees in organisations.

Pooling of knowledge/expertise, coordination across departments, representation of different interests, improved communication, and shared responsibility for decisions.

List two disadvantages of committees.

They can be slow and costly in time, may produce compromise/watered-down decisions, can diffuse responsibility, and may be dominated by strong individuals.

What are the main purposes/roles of an accounting system in a business?

To record transactions, provide financial information for decision-making, ensure stewardship/accountability, support planning and control, and meet legal/regulatory reporting requirements.

What is the accounting equation?

Assets = Capital (Equity) + Liabilities.

Distinguish financial accounting from management accounting.

Financial accounting produces historical, regulated statements for external users (annual format, statutory). Management accounting produces forward and historical, unregulated, often detailed reports for internal management decision-making.

Name the main financial statements in a set of accounts.

Statement of financial position (balance sheet), statement of profit or loss (income statement), statement of cash flows, and statement of changes in equity.

What is the difference between financial accounting reports and management accounting reports in terms of regulation and time focus?

Financial reports are externally regulated/standardised and historical; management reports are not externally regulated and are both historical and future-oriented (e.g. budgets, forecasts).

Distinguish internal audit from external audit by their main purpose.

External audit gives an independent opinion on whether the financial statements show a true and fair view (for shareholders). Internal audit evaluates and improves risk management, internal control, and governance for management.

Who appoints the external auditor and who appoints internal auditors?

External auditors are appointed by the shareholders (members); internal auditors are appointed/employed by the company's management (often via the audit committee).

What is the key difference in independence between internal and external auditors?

External auditors must be independent of the company; internal auditors are employees of the organisation and therefore less independent, though they should report functionally to the audit committee.

Define 'internal control' within an organisation.

The processes, policies, and procedures designed by management to provide reasonable assurance about the achievement of objectives, reliability of reporting, compliance with laws, and safeguarding of assets.

What does the COSO framework identify as the five components of internal control?

Control environment, risk assessment, control activities, information and communication, and monitoring activities.

What three conditions make up the 'fraud triangle'?

Motivation/pressure (incentive), opportunity, and rationalisation.

Distinguish 'fraudulent financial reporting' from 'misappropriation of assets'.

Fraudulent financial reporting is the intentional misstatement of financial statements (e.g. overstating profit); misappropriation of assets is the theft of an entity's assets (e.g. stealing cash or inventory).

What was the focus of Frederick Taylor's Scientific Management?

Improving efficiency and productivity through scientific study of tasks, standardisation of the 'one best way' to work, selection/training of workers, and payment by results (piece rates).

What are Henri Fayol's five functions of management?

Planning, Organising, Commanding (directing), Coordinating, and Controlling.

What does Henry Mintzberg's theory describe as the three categories of managerial roles?

Interpersonal roles (figurehead, leader, liaison), Informational roles (monitor, disseminator, spokesperson), and Decisional roles (entrepreneur, disturbance handler, resource allocator, negotiator).

What are the three leadership styles in the Lewin/Tannenbaum-style classification?

Autocratic (authoritarian - leader decides), Democratic (participative - decisions shared), and Laissez-faire (free rein - minimal interference, team decides).

In Blake and Mouton's Managerial Grid, what two dimensions are plotted and what is the ideal style?

Concern for people (y-axis) and concern for production/task (x-axis). The ideal is 9,9 - 'team management' (high concern for both).

What are the five levels of Maslow's hierarchy of needs, from lowest to highest?

Physiological, Safety/security, Social (belonging/love), Esteem, and Self-actualisation.

What are the two sets of factors in Herzberg's Two-Factor (Motivation-Hygiene) theory?

Hygiene factors (e.g. pay, working conditions, supervision) prevent dissatisfaction but don't motivate; motivator factors (e.g. achievement, recognition, responsibility, growth) create positive satisfaction and motivation.

What does Victor Vroom's Expectancy Theory state motivation depends on?

Force (motivation) = Expectancy x Valence: the belief that effort leads to performance (expectancy) multiplied by the value the person places on the expected reward (valence). McGregor adds instrumentality (performance leads to reward) in the expanded model.

What is the difference between McGregor's Theory X and Theory Y views of workers?

Theory X assumes people are lazy, dislike work, and need coercion and control. Theory Y assumes people are self-motivated, seek responsibility, and find work natural, so should be empowered.

What does the Eisenhower (urgent/important) matrix recommend for each quadrant in time management?

Important & urgent = Do now; Important & not urgent = Schedule/plan; Not important & urgent = Delegate; Not important & not urgent = Eliminate/drop.

List three effective time management techniques recommended for personal effectiveness.

Prioritising tasks (e.g. ABC or urgent/important), making to-do lists and setting deadlines, avoiding procrastination, delegating where possible, and minimising interruptions/'time wasters'.

What is 'personal effectiveness' and what tools help develop it?

Making the best use of one's own skills, knowledge, and time to achieve goals. Tools include personal development plans (PDPs), appraisals, SWOT self-analysis, time management, mentoring/coaching, and continuing professional development (CPD).

What is the role of a 'coach' versus a 'mentor' in developing personal effectiveness?

A coach focuses on improving specific skills and job performance, usually short-term and task-focused; a mentor provides longer-term, broader career guidance and support from a more experienced colleague.