ACCA F1 flashcards – set 3

See also ACCA F1 Flashcards: Set 1 | Set 2 | Set 3 | Set 4


What is Handy’s best fit theory of leadership / management?

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The variables of: the leader, the task, the subordinates and the environment all have to match. For example an authoritative manager in charge of subservient staff, doing a repetitive task to a strict timetable.

What are the two classes of motivation theory?

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Content theory and process theory.

What are the three types of dismissal?

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* Termination,
* Non-renewal of a fixed-term contract,
* Constructive dismissal.

What is the difference between the balance of trade and the current account.

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The balance of trade is the inflows and outflows from the trade in goods.
The current account includes the balance of trade but also income from overseas investments and transfers such as those to and from the EU.

What is structural unemployment?

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Changes in an industry’s structure.
For example if manufacturing jobs move overseas, unemployment is caused by a change in the structure of the economy.

Describe job enlargement, job rotation and job enrichment.

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Job enlargement means more of almost exactly the same. It is certainly what will be called a horizontal change; there is no more challenge or responsibility in the job.
Job rotation is also a horizontal change with no real increase in challenge.
Job enrichment is a vertical change. It’s giving people more responsibility and more challenge in their job.

Describe Vroom’s expectancy theory

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Motivating force = Valence x Expectation

Valence is how much someone wants something (like a bonus or promotion).
Expectation is an assessment of the likelihood of success.

What are the two axes of Blake and Mouton’s managerial grid?

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1 Concern for the task
2 Concern for people

Monitor, disseminator and spokesman are terms associated with which of Mintzberg’s managerial roles?

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Information processing role

Figurehead, liaison and leader are terms associated with which of Mintzberg’s managerial roles?

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Interpersonal role

Improver/changer, disturbance handler negotiator and resource allocator are terms associated with which of Mintzberg’s managerial roles?

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Decisional role

Define ‘power’

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Power is the ability to influence events or people

Define ‘authority’

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Authority is the right to exercise power.

Define ‘delegation’

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Delegation is the transfer of authority. It is NOT the transfer of responsibility or accountability.

What are the four types of leadership style suggested by Ashridge Management College in descending order of autocracy.

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Tells, sells, consults, joins.

Drucker’s style theory proposed three functions of management (managing a business; managing managers; managing workers and work). What five further categories are these broken down into?

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* Setting objectives,
* Organising the group,
* Motivating and communicating,
* Measuring performance,
* Developing people.

According to Drucker’s style theory, what are the three functions of management?

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* Managing a business;

* Managing managers;

* Managing workers and work.

What is the name of Mayo’s studies and what did these suggest?

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The Hawthorne studies: there is more to motivation than pay; people like groups; groups influence behaviour.

Who was first associated with the Human Relations School of management?

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Elton Mayo

What are the benefits and the main problem with scientific management?

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Benefits: increased productivity, wage allocation based on output, workforce care programmes.

However, often dehumanises work.

What is the essence of scientific management?

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It is management’s function to study work and to develop a science of wotk so that jobs can be carried out efficiently.

Who is associated with scientific management?

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Frederick Taylor

What are Henri Fayol’s five functions of management (Classical Theory)?

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* Planning,
* Organising,
* Commanding,
* Coordinating
* Controlling.

What is ‘trait theory’?

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The idea that management ability can be forecast through personal traits such as intelligence, initiative and self-assurance.

Who are responsible for preparing the financial statements?

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The directors are responsible for preparing the financial statements

Who are responsible for setting up the system of internal control?

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The directors are responsible for setting up and maintaining the system of internal control

What is meant by the internal control environment?

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The control environment essentially refers to the culture within the organisation. Some organisations put a very high priority on having a good system of internal control in place whereas others see these as a nuisance.

What are the two parts of an internal control system?

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Control environment and detailed control processes.

Who are responsible for preventing and detecting fraud?

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The directors are responsible for preventing and detecting fraud. Auditors should detect fraud if it is large enough to cause a material misstatement in the financial statements.

What is GAAP?

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GAAP stands for Generally Accepted Accounting Principles. This is a common set of accounting principles, standards and procedures that companies use to compile their financial statements.

What body issues financial reporting standards?

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The Accounting Standards Board issues financial reporting standards.

What is the FRRP and what is its function?

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(Accountancy regulation)
The Financial Reporting Review Panel (FRRP) is concerned with the examination and questioning of departures from accounting standards by large companies.


Comments

  1. avatar says

    Hi one of the flash card ask what is GAAP. The answer given by the flashcard was “GAAP stands for Generally Accepted Accounting Practice” …

    While actually it is Generally Accepted Accounting Principles (at least from what I found in google…)

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