Business and Technology MCQ Quiz - Objective Question with Answer for Business and Technology - Download Free PDF

The Correct Option is option 2

Additional Information:

• Cultural Dimension: High Uncertainty Avoidance
• The staff's "resistance to adopting new digital tools" and preference for "familiar, manual processes" despite directives indicates a strong dislike for ambiguity and change. This aligns with High Uncertainty Avoidance in Hofstede's model, where cultures "dislike uncertainty" and "will not like to act outside their normal job descriptions or roles".
• Internal Control Component: Control Activities
• Control Activities are the "policies and procedures that help ensure that management directives are carried out". If staff resist new digital tools and processes (which would be the basis for new control activities for efficiency and data accuracy), these activities cannot be effectively implemented or followed, directly weakening this component of internal control.
• Explanation of Incorrect Options for Part 2:
• Option 1. Cultural Dimension: Individualism; Internal Control Component: Information System and Communication. Individualism relates to integration into groups, which isn't the primary driver of resistance to new tools/processes. While the Information System might be affected, Control Activities are more directly impacted by resistance to new procedures.
• Option 3. Cultural Dimension: Masculinity; Internal Control Component: Monitoring of Controls. Masculinity relates to values like competitiveness and material wealth, which isn't the direct cause of resistance to new workflows. Monitoring of Controls assesses the quality of internal control over time, but the problem is with the execution of controls (activities), not just monitoring them.
• Option 4. Cultural Dimension: Low Power Distance; Internal Control Component: Control Environment. Low Power Distance would imply a desire for less hierarchical authority and more involvement in decision-making, which is not what's described as causing resistance to tools/processes. The Control Environment is the overall attitude of management to internal controls, which is influenced by leadership, but staff resistance to specific procedures more directly impacts control activities.

The Correct Option is option 3

Additional Information:

• Value Chain Activity: Inbound Logistics
• The problem states EcoHarvest needs to address "inconsistent supplier vetting and occasional quality control issues" related to its "decentralized purchasing model." Inbound Logistics in Porter's Value Chain deals with "receiving, storing and handling raw material inputs". Implementing an integrated supply chain system here would directly improve supplier management, vetting, and quality control of incoming materials, which are crucial for an organic food producer focused on sustainability.
• Integrated Reporting Capital: Natural Capital
• EcoHarvest is an "organic food producer" and the CEO believes in "long-term value" and enhancing "sustainability practices." Natural Capital in Integrated Reporting is defined as "any stock or flow of energy and material within the environment that produces goods and services," including "resources of a renewable and non-renewable materials e.g. land, water, energy". Improved sustainable practices for an organic food producer directly enhance and depend on the health of natural capital.
• Explanation of Incorrect Options for Part 1:
• Option 1. Value Chain Activity: Outbound Logistics; Integrated Reporting Capital: Intellectual Capital. Outbound logistics involves distributing finished goods to customers, which is not the primary activity for supplier vetting and input quality. Intellectual Capital refers to knowledge and proprietary information, not directly enhanced by improved sustainability practices in the supply chain for an organic food producer.
• Option 2. Value Chain Activity: Operations; Integrated Reporting Capital: Manufactured Capital. Operations involve transforming raw materials into finished goods. While quality control is part of operations, the inconsistent supplier vetting points more directly to the input stage. Manufactured Capital refers to physical goods like tools and buildings, which is less directly tied to the sustainability aspect of supplier vetting than natural capital.
• Option 4. Value Chain Activity: Service; Integrated Reporting Capital: Financial Capital. Service activities occur after the point of sale. Financial Capital refers to shares, bonds, or banknotes, and while sustainability can impact financial performance, Natural Capital is a more direct fit for an organic food producer's sustainability focus.

The correct option is option 4

Additional Information:

• Leadership Style: Transformational
• Ms. Sharma "inspires her team through a shared vision of transforming the industry." According to Bennis's Theory, transformational leaders inspire and motivate others to work at levels beyond mere compliance, often by communicating a compelling cause or vision. This contrasts with transactional leaders who focus on rewards for compliance. 
• Audit Committee Deviation: Inclusion of executive directors.
• The scenario states the audit committee is "comprised of a mix of executive and non-executive directors." Best practice in corporate governance strongly recommends that an audit committee should consist of independent non-executive directors only. The inclusion of executive directors compromises the committee's independence and objectivity, creating a significant deviation from best practice.
• Explanation of Incorrect Options for Part 2:
• Option 1. Leadership Style: Transactional; Audit Committee Deviation: Inclusion of executive directors. The leadership style described is clearly transformational, not transactional. The deviation identified is correct. 
• Option 2. Leadership Style: Transformational; Audit Committee Deviation: Lack of external auditor presence. While an external auditor liaises with the audit committee, the committee's composition (presence of executive directors) is the primary structural deviation from best practice regarding independence, not the mere "lack of external auditor presence" on the committee. 
• Option 3. Leadership Style: Transactional; Audit Committee Deviation: Lack of independent non-executive directors. The leadership style is transformational. The scenario implies the presence of some non-executive directors (as it states a "mix"), but the deviation is the inclusion of executive directors and the CEO also being the Chair, rather than a total lack of independent NEDs

The Correct Option is option 3

Additional Information:

• Primary Technology: Cloud Computing
• The scenario explicitly states Quantum Innovations is shifting "from desktop applications to a fully cloud-based service model". Cloud computing uses the internet to access, store, and process data on remote servers, enabling software to be delivered as a service, which is precisely what a "cloud-based service model" entails.
• Most Critical Information System: Executive Information System (EIS)
• Ms. Sharma, as the CEO, needs "strategic insights" and to monitor the overall performance of the new cloud-based services. An Executive Information System (EIS) provides strategic managers with flexible access to summarized information from the entire business, as well as relevant external information, to aid strategic decision-making and overall business modeling. This makes it most critical for her role in monitoring the strategic pivot.
• Explanation of Incorrect Options for Part 1:
• Option 1. Primary Technology: Artificial Intelligence (AI); Most Critical Information System: Expert System (ES). While AI is transformative, the core enabler for moving to a cloud-based service model is cloud computing itself. Expert Systems (ES) hold specialist knowledge for non-experts, which isn't the primary system for general strategic performance monitoring. 
• Option 2. Primary Technology: Blockchain Technology; Most Critical Information System: Transaction Processing System (TPS). Blockchain technology is about secure, distributed ledgers and transaction verification, not the primary technology for shifting a software model to the cloud. A Transaction Processing System (TPS) records daily transactions and is critical for operational level activities, but less so for strategic insights to the CEO. 
• Option 4. Primary Technology: Big Data Analytics; Most Critical Information System: Decision Support System (DSS). Big Data Analytics is a tool for processing large datasets to find trends and insights. While useful, it's enabled by cloud computing and would support other systems, rather than being the primary technology enabling the shift itself. A Decision Support System (DSS) helps with semi- or unstructured decisions, but an EIS is typically more suited for a CEO's broader strategic oversight. 

The Correct Option is option 3

Additional Information:

• Deviation from Best Practice: CEO also chairs the board
• Good corporate governance recommends that the role of Chair (responsible for the Board's activities) should be distinct from the Chief Executive Officer (CEO), who runs the day-to-day operations. If one person holds both roles, it gives them too much power and allows them to individually dominate the running of the company.
• Committee Purpose: To review systems of internal controls and risk management.
• The Audit Committee, typically comprised of independent non-executive directors, is responsible for monitoring and reviewing the company's internal financial controls and the integrity of the financial statements. They also review systems of internal controls and risk management within the organization. Overseeing a product launch's risks (like the bug's potential impact on data accuracy and reputation) falls under this purview, ensuring ethical considerations are addressed.
• Explanation of Incorrect Options for Part 2:
• Option 1. Deviation from Best Practice: CEO also chairs the board; Committee Purpose: To review accounting policies and ensure they are appropriate. While the deviation is correct, reviewing accounting policies is one purpose of the audit committee, but it doesn't fully capture the breadth of overseeing the risk and control aspects of a new product launch with a known bug.
• Option 2. Deviation from Best Practice: Presence of executive directors; Committee Purpose: To decide on remuneration levels for executives. The presence of executive directors is standard for a board. The deviation is the CEO also being Chair. The purpose of deciding executive remuneration is for the remuneration committee, not primarily for overseeing product launch risks.
• Option 4. Deviation from Best Practice: Presence of non-executive directors; Committee Purpose: To oversee the strategic direction of the company. The presence of non-executive directors is a best practice, not a deviation. While NEDs contribute to strategy, the primary purpose of overseeing specific launch risks for ethical considerations would fall to the Audit Committee's risk and control function.

The correct option is option 3 

Additional Information:

In a traditional partnership, partners share profits, control, and responsibility, including liability.

Correct Answer: A

Explanation:
 

Statement (2) is not true, because the informal organisation has its own agenda.

Statement (3) is not true, because a strong informal organisation with its own agenda can undermine the formal organisation: create damaging rumours, safety/quality shortcuts, distractions from task goals etc.

The correct option is option 3

Additional Information:

• Flat structures simplify hierarchy, promoting faster communication.
• Fewer levels = quicker decisions and better teamwork.

Correct Answer: A

Explanation: 

Resource, individualism, uncertainty, dynamism and bureaucratic are not cultural types per Handy.

Correct Answer: A

Explanation:

Machine learning uses networks, statistics and operational research to identify insights in data without being programmed what to conclude and is an example of artificial intelligence.

Correct Answer: B

Explanation:
 

The shared service centre is created within the organisation and is a part of it, although its relationship is similar to that of an external service provider.

Correct answer: A.

Explanation:

This is a true statement. Offshoring is a viable alternative if an organisation is attempting to reduce costs and/or seeking skilled labour.

The correct option is option 4 

Additional Information:

A professional accountant acting in accordance with fundamental ethical principles is demonstrating objectivity when they give a complete and precise view, which by implication means that negative aspects should not be concealed or positive aspects accentuated. 

The correct option is option 3 

Additional Information:

•  Tax evasion is illegal. Tax avoidance is used to describe schemes that frustrate the intentions of Parliament, while tax mitigation describes schemes that do not frustrate the intentions of Parliament. 

Correct Answer: A

Explanation:
 

The role culture is a bureaucratic or mechanistic culture, as described in the scenario. Task culture is project-focused; existential culture is person-focused; and power culture is leader-focused.