©Themoon EXAM SOLUTIONS
12/11/2024 3:40PM
ICAEW BTF - Memory Recap Test
Questions with Verified Answers
Porter's 5 forces model, what is the purpose and what are the elements? - Answers✓✓Analyses
the competitive aspect of the task environment:
- Bargaining power of suppliers
- Threat of substitute products or services
- Bargaining power of customers
- Threat of new entrants
- Rivalry among existing firms
In terms of the management process, what does leading involve? - Answers✓✓Concerned with
generating effort and commitment towards meeting objectives
What are the different types of power and their meaning? - Answers✓✓Coercive - physical force
or power of punishment
Reward - e.g. power to pay you
Legitimate - associated with a particular position
Expert - from knowing lots
Referent - through charisma/charm
Negative - power to disrupt operations
What are different types of manager? - Answers✓✓Line manager - traditional boss
Staff manager - no actual power, has power through giving advice (e.g. HR)
Functional manager - best example is IT, hybrid of line and staff manager (has real power in
some circumstances)
Project manager - has power over a particular project/things that happen in a certain context
, ©Themoon EXAM SOLUTIONS
12/11/2024 3:40PM
Would a driver mislaying a tablet containing sensitive information constitute a cyber risk? -
Answers✓✓Potentially yes, cyber risk also encompasses operational IT risks due to poor
systems integrity so if the data would be accessible then this could be a cyber risk
What are Mintzberg's 5 basic components of an organisation, and what do they do? -
Answers✓✓Technostructure: designs systems and standardises work
Strategic apex: those at the top (board, etc.)
Middle line: middle management
Operating core: front line workers
Support staff: cleaning, catering, etc.
What are the CATIVA criteria for good information processing?
What are the ACIANA criteria for good information security systems? -
Answers✓✓Completeness, accuracy, timeliness, inalterability, verifiability and assessability
Availability, confidentiality, integrity, authenticity, non-repudiation, authorisation
Difference between data and information? - Answers✓✓Data is simply distinct pieces of
information, can take many forms. Information is the output of whatever system is used to
process data - e.g. a computer system. It has structure to it.
What is the definition of risk and uncertainty? - Answers✓✓Risk is the variation in an outcome
while uncertainty denotes a lack of information
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12/11/2024 3:40PM
With regards to internal controls, what are the managers responsible for? What about the board
of directors? - Answers✓✓Managers are supposed to implement the controls and monitor them.
The board of directors are responsible for policy making, reviewing effectiveness and reporting
to shareholders.
What are the types of finance activities for a company and what are their responsibilities? -
Answers✓✓Finance function (overarching)
Management accounting: budgeting, decision making, performance measurement, capital
budgeting, pricing --> internal
Treasury management: cash budgets, long-term finance decisions, managing financial risk,
management of working capital
Financial reporting: financial statements, tax, provision of information to external regulators -->
external
What are the key features of an organisation? - Answers✓✓Social arrangement that pursues
collective goals, controls its own performance, and has a boundary separating it from its
environment
What are Mintzberg's 5 Ps of strategy? - Answers✓✓Plan - for example a budget
Ploy - like a manoeuvre in a competitive game
Pattern - something you tend to do
Position - matching internal and external factors
Perspective - what is your attitude to the environment?
What are the stages of the rational planning model? - Answers✓✓SWOT analysis (internal and
external)
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12/11/2024 3:40PM
Corporate appraisal
Mission, goals and objectives
GAP (difference between the appraisal and the mission)
Strategic choice
Implementation --> review and control (feedback loop)
What is cost leadership, differentiation, and focuses? - Answers✓✓Cost leadership simply about
producing at the lowest cost in the industry as a whole (note that not necessarily charging the
lowest prices
Differentiation about providing a product or service that the industry believes to be unique
Focus/niche means restricting activities to one section of the market (can have both a cost focus
niche and differentiation niche)
When would we use a SWOT analysis? - Answers✓✓At the corporate appraisal stage
What is risk exposure? - Answers✓✓Simply a measure of the way a business is faced by risks,
whether financial/business/etc.
What are the fundamental and enhancing qualitative characteristics of financial reporting? -
Answers✓✓Fundamental: relevance and faithfulness of representation
Enhancing: understandability, comparability, verifiability and timeliness
What is tactical information? What about operational, strategic, and planning? -
Answers✓✓Helps deal with short-term issues and opportunities. Operational is to do with the
day-to-day, strategic information has longer term concerns, and planning information is
explicitly to do with plans.
