Answers of Chapter 1a.

1 A 16 B 31 B 46 D 61 A 76 D
2 B 17 E. 32 B 47 A 62 D 77 C
3 A 18 A. 33 E 48 B 63 D 78 A
4 C 19 D 34 C 49 A 64 B 79 C
5 C 20 D 35 A 50 A. 65 A 80 B
6 D 21 B 36 D 51 C 66 B 81
7 B 22 B 37 B 52 A 67 B 82
8

8 E 23 C 38 A 53 B 68 A 83
9 B 24 E 39 B 54 A 69 A 84
10 B 25 B 40 CD 55 D 70 A 85
11 A 26 D 41 A 56 C 71 C 86
12 A 27 A 42 C 57 A 72 C 87
13 B 28 A 43 B 58 A 73 B 88
14 D 29 C 44 A 59 A 74 D 89
15 C 30 A 45 B 60 A 75 D 90
Explanation.
2. Organization is preoccupied with performance.
7. Retail and Dist companies delivering goods to the end users. Above is the definition of manufacturing co.
9. False. They produce software, publishing, films, music etc.
10. Private sector is owned by individuals and others. Govt. Owned public sector companies.
13. The ownership and control of a limited company are legally separate.
16. Public limited is private sector while public sector is govt. Owned companies.
17. Compliance cost one of the disadvantages of the limited co.
18. Co-operatives are businesses owned by their workers or customers, who share the profits.
21. They get advantage of low interest from bank because they are backed up by Govt.
22. They have no link with Govt. And they are none profitable organization.
25. Strategic apex is the top management in the organization. Basic work is done by the operational core.
32. SBU stands for Strategic business unit.
33. Simple structure is a one man show. The apex control and direct all, thing move around him.
36. Simple system there is no middle management. Strategic apexes make all decision.
39. They allow rapid downsizing in slow growth, and safe all expenditure.
43. No then the span of control will also be 7.
45. More level of management result in narrow span of control. Or week span of control.
49. Because in narrow span of control manger control very few subordinates.
67. A narrow span of control allows a manager to communicate quickly with the employees under them and
control them more easily
68. It costs less money to run a wider span of control because a business does not need to employ as many
managers.
69. It requires a higher level of management skill to control a greater number of employees, so there is less
management skill required
70. There are less layers of management to pass a message through, so the message reaches more employees
faster.
74. Tax evasion is a criminal activity. Its involve breaking of law for not declaring the income to save tax.
80. They are required to.

Answers of Chapter. 1b.

1 C 11 E 21 B 31 A 41 B 51 A
2 B 12 A 22 C 32 A 42 D 52 C
3 A 13 D 23 A 33 D 43 A 53 D
4 D 14 B 24 D 34 C 44 C 54 D
5 A 15 A 25 A 35 B 45 B 55 B
6 B 16 B 26 B 36 B 46 B 56 D
7 D 17 C 27 B 37 A 47 B 57 A
8 D 18 B. 28 C 38 C 48 D 58 C
9 C 19 A 29 C 39 D 49 A 59 AD
10 E 20 D 30 B 40 D 50 D 60 C
Explanation.
14.
16.
18.
19.
26.
27.
30.
41.

Profit earned by the company kept with it for future needs.

Its the responsibility of the director to prepare the books of the company.
No they are required to do so.
The real work is product. They will also do market work but mandatory.
They are part of HR plan
Authority is at one place.
Locals problem are better solved in De-Centralized system.
Process research is to improve the method of making things. Mean reducing steps and improving quality.

Answers of Chapter. 2.
1 B 11 A 21 D 31 C 41 D 51 C
2 A 12 B 22 A 32 B 42 A 52
3 A 13 A 23 C 33 C 43 D 53
4 B 14 A 24 A 34 C 44 A 54
5 C 15 D 25 A 35 B 45 A 55
6 D 16 C 26 B 36 C 46 A 56
7 A 17 D 27 D 37 B 47 B 57
8 A 18 C 28 A 38 A 48 A 58
9 C 19 A 29 D 39 B 49 D 59
10 B 20 C 30 D 40 B 50 A 60
Explanation.
1. Information should be cost effective.
4. ESS is also called EIS.
10. False because in large organization data is held in one place and it is connected by internet.
16. Because it have analytical capabilities.
37. Database gave results what is entered. If you put garbage it gave you the same. It is not self corrected.

41. Environmental scanning gather information from outside not from inside.

Answers of Chapter. 3.
1 C 11 A 21 B 31 A 41 A 51 C
2 C 12 B 22 C 32 D 42 D 52
3 D 13 B 23 B 33 A 43 B 53
4 D 14 B 24 C 34 D 44 A 54
5 A 15 A 25 B 35 C 45 C 55
6 B 16 C 26 A 36 B 46 A 56
7 A 17 A 27 B 37 C 47 D 57
8 C 18 B 28 B 38 A 48 B 58
9 A 19 D 29 B 39 A 49 A 59
10 B 20 A 30 C 40 B 50 C 60
22

Explanation.
6. Power culture is effective if the size is under or near 20 people.
10. Best for stable organization when large and when the work is predictable.
12. In Task culture the main focus is on the task to complete it in the best effective way.
13. There is no dominated or clear leader.
14. Task culture is expensive because expert charge market price.
21. Greater Centralization and top down chain of command and closer supervision.
27. These are the qualities of a men / masculinity.
28. Its always exists with the formal one.
37. Internal stakeholders are the company employees and the management.
38. Stakeholder has link in personal or finance like employee or bank. While shareholders are the owner of the
co.
43. They are important and they should be kept informed.

Answer Chapter 4. Ethical considerations.

1 C 11 B 21 A 31 D 41 B 51
2 D 12 C 22 B 32 A 42 C 52
3 A 13 D 23 A 33 D 43 53
4 B 14 C 24 C 34 A 44 54
5 B 15 A 25 B 35 A 45 55
6 B 16 D 26 D 36 B 46 56
7 A 17 C 27 C 37 A 47 57
8 C 18 B 28 B 38 A 48 58
9 D 19 A 29 A 39 C 49 59
10 A 20 D. 30 B 40 D 50 60
Explanation.

5. They exit to serve the external purpose and managers are responsible for it.
12. The certainty of legal rules does not exist in ethical theory
19. Because its reduce profit and increase cost. E.g. Water treatment plant.
22. False Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or
strategic purposes
25. Both must follow.
27. A is also a good choice but C is the best one.
33. RRRTC. Remember none of the professional quality start with these 5 letters. Just remember RRRTC.
38. Yes because some time they do certain things that gave them inner satisfaction and those result as
negative for the org.
42. Whistle blowing frequently involves financial loss for the whistleblower.

Answer Chapter 5.
1 B 11 A 21 D 31 E 41 D 51 A
2 A 12 A 22 B 32 A 42 D 52 A
3 D 13 D 23 B 33 B 43 C 53 D
30

4 C 14 D 24 B 34 A 44 B 54
5 C 15 B 25 B 35 E 45 A 55
6 C 16 B 26 B 36 C 46 B 56
7 E 17 C 27 A 37 D 47 B 57
8 A 18 A 28 D 38 B 48 B 58
9 C 19 B 29 C 39 A 49 C 59
10 B 20 C 30 E 40 A 50 A 60
Explanation.
1. They are the executive managers and accountable to shareholders.
10. Their performance can be check.
15. Should have a mix bag of knowledge and experience.
16. Should have industry knowledge and expertise.
19. It should be done only once a year.
22. Non-executive directors have no executive (managerial) responsibilities
24. These both committees should have only NEDs
26. NEDs will not get any pension after retired.
38. Supervision has turn in reduction of employees poor performance related issues.
46. There should be a mix of both Directors and N.E.Ds with N.E.Ds in majority.
47. These both committees are totally consist of NEDs.
48. The nomination committee only recommends the names to the BOD. Their appointment is done by the
board.

Answer Chapter 6.
1
2
3
4

A 16 A 31 B 46 A 61 D 76 C 91 C
D 17 B 32 A 47 B 62 A 77 D 92 B
B 18 B 33 A 48 A 63 A 78 B 93 C
A 19 B 34 A 49 D 64 C 79 C 94 A

5 B 20 A 35 C 50 B 65 A 80 A 95 B
6 E 21 B 36 B 51 A 66 D 81 AB 96 D
7 A 22 A 37 A 52 A 67 A 82 B 97 A
8 D 23 C 38 B 53 D 68 B 83 D 98 D
9 C 24 B 39 D 54 B 69 D. 84 A 99 B
10 D 25 A 40 B 55 B 70 B 85 B 100 D
11 B 26 D 41 A 56 B 71 A 86 C
12 A 27 D 42 C 57 B 72 A 87 B
13 C 28 A 43 B 58 C 73 D 88 A
14 A 29 C 44 C 59 D 74 A 89 D
15 D 30 C 45 D 60 C 75 B 90 D
Explanation.
5. Its rarely in a stable state.
11. The total demand for goods and services in the economy is equal to the total supply of goods and services
in the economy
17. Recession tends to occur quickly, while recovery is typically a slower process.
20. Because the value of money reduce.
21. Imports will be cheap and export will be expensive.
24. Its required some inflation.

38
36. Seasonal employment and frictional unemployment will be short-term
40. T is possible to create more jobs without reducing unemployment.
43. Structural unemployment, technological unemployment, and cyclical unemployment are all longer term,
and more serious.
50. The rate of extraction of natural resources will impose a limit on the rate of growth
52. Firms need to invest more and this requires financing. This finance can only come from higher savings
which in turn require the population
to consume less
54. Increase in National income due to increase in price is not a real national income.
55. Full employment does not mean that everyone who wants a job has one all the time, but it does mean that
unemployment levels are low,
and involuntary unemployment is short-term.
56. Creating full employment may lead to increased inflation rates.
57. Taxation affects consumers' purchasing power.
70. A specific tax is charged as a fixed sum per unit sold.
73. Public borrowing and spending are the feature of fiscal policy.
78. The difference between the value of goods and services exported out of a country and the value of goods
and services imported into the
country is balance of trade. While balance of payment is the total accountings record (import and exp) of a
single country with the rest of the
world and its difference.
82. A positive current account balance means that the country is exporting more goods and services than it is
importing.
85. In the capital account, physical assets such as a building or a factory are recorded
87. Its help to reduce the current account deficit.
92. Aggregate demand = (consumption + investment+ Govt. Investment + export) Minus (-) imports.

Answer Chapter 7.
1 B 16 BC 31 B 46 F 61 A
2 D 17 A 32 A 47 D 62 A
3 A 18 D 33 A 48 A 63 A

4 C 19 C 34 E 49 E 64 A
5 E 20 D 35 B 50 C 65 D
6 D 21 B 36 E 51 E 66 B
7 C 22 A 37 A 52 C 67 C
8 A 23 D 38 A 53 D 68 B
9 B 24 E 39 D 54 B 69 A
10 C 25 C 40 C 55 A 70 C
11 A 26 B 41 C 56 A 71
44

12
13
14
15

C 27 A 42 B 57 C 72
A 28 B 43 B 58 C 73
A 29 D 44 C 59 D 74
D 30 A 45 B 60 C 75

09. It is considered as dismissal.

28. Data protection act provide security to the individuals only.
31. Data about organizations is not personal data
35. Increasing birth rates mean more young people and falling death rates mean more elderly people.
43. A company may have highly confidential information and to let outsiders handle it could be seen as risky in
commercial and/or legal terms.
45. In a competitive market company charge very low margin. Because lots of small companies are providing
similar products.
65. The organization should follow the LIFO method if the employees are not vital for the company.
66. This can be sued. Because it means that the duty has to be performed.
68. Personal data is subject to living individual only

Answers of Chapter 8. History and Role of

Accounting
1 AB 13 D 25 A 37 D 49 C 61 B
2 D 14 D 26 B 38 C 50 A 62 B
3 D 15 B 27 BC 39 DE 51 B 63 B
4 B 16 A 28 D 40 A 52 A 64 A
5 C 17 B 29 A 41 C 53 B 65 D
6 A 18 A 30 E 42 A 54 A 66 A
7 C 19 C 31 A 43 D 55 D 67 E
8 B 20 A 32 C 44 D 56 D 68
9 B 21 A 33 B 45 C 57 C 69
10 A 22 B 34 A 46 B 58 B 70

11 C 23 C 35 D 47 A 59 B 71
12 D 24 D 36 A 48 D 60 A 72
Explanation.
8. Transactions are finally posted in Journal Ledger.
15. Preparing F/S is the responsibility of Accountant that is financial controller
16. Budgets and Cost accounting are the duty of management accountant.
25. Too much detail will make reader lost and harder to understand.
30. This is the responsibility of HR department.
36. Credit Controller deals with sales credit etc.
53. This is the role of the internal auditor. The role of the external auditor is to give its opinion to the
shareholder.
58. Internal auditor can be any one. Only external auditor should be a chartered accountant by law.
61. They both have the same principles.
62. Manual system is bulky not the computerized. It can even come in a single USB drive.

Answer for Chapter 9. Control, Security and Audit

1 A D 11 B 21 B 31 A 41 A 51 B 61 B
2 C D 12 B 22 A 32 B 42 A 52 A 62 B
3 B 13 D 23 C 33 A 43 C 53 A 63
4 E 14 B 24 A 34 C 44 D 54 A 64
5 A B C 15 B 25 D 35 D 45 C 55 C 65
6 D 16 C 26 A 36 B 46 AB 56 B
7 C 17 D 27 D 37 A D 47 D 57 BC
8 F 18 D 28 B 38 B 48 C 58 D
9 C 19 B 29 B 39 C E 49 A 59 C
10 A 20 A 30 B 40 D 50 A 60 A
55
Explanation
15. He or she should do sign or Rubber stamp etc belonging to him
19. Internal Auditors seeks to monitor all aspects of the business.
28. It is vital for the Internal Auditors that they must be independent and free from all pressures.
29. Internal Auditor has a much wider scope.
30. External Auditor have nothing to do with the operations of the business their job is to report the stake
holders about the full and fair
presentation of financial statement
31. It is the duty of the internal auditors to detect Frauds. While in the process of audit due to their work and
amylases if they find any fraud or
error then they can gave their opinion.
36. This is their duty
56. Modern computer are very small in size and portable in nature.
62. The internal audit is for the management not for the shareholders.

Answer for Chapter 10. Identifying and

Preventing Fraud.
1 B 13 B 25 D 37 C 49 A 61
2 A 14 B 26 C 38 A 50 A 62
3 D 15 D 27 A 39 D 51 A 63

4 C 16 C 28 B 40 B 52 C 64
5 A 17 A 29 E 41 D 53 D 65
6 B 18 F 30 A 42 E 54 B 66
7 C 19 F 31 B 43 A 55 B 67
8 D 20 D 32 A 44 C 56 68
9 C 21 B 33 B 45 A 57 69
10 B 22 A 34 B 46 D 58 70
11 B 23 A 35 B 47 C 59 71
12 B 24 F 36 A 48 B 60 72
Explanation
5 Teeming and lading is the best known methods of fraud in the sales ledger area
6 Must have it. If someone else gave authority it will detect the scam.
7 Arif has the permission to take order and approve credit.
8 This needs senior staff, falsely invoice and goods or service never supplied. And also personal or friend
company.

60
9 Collude with supplier and received less items then billed.
10 Understating Expense will show high profits in accounts.
11 This will result in the increase of income.
14 Cultural Factors are National or familial Values. These are for herself.
17 Yes there are certain types of fraud associated to some industry
20 Understating Inventory will result in High Gross margins.
21 They are more capable of frauds.
30 Dominant manager will do thing they way he do.
33 This will reduce the chance of fraud as document will check on different stages.
34 Fraud officer is free to talk and gave advice to staff.
35 They are required to report all frauds to the management.
54 This is one of the prime reasons of frauds.
56 They are.

Answer 11. Leading and managing people

1 D 11 D 21 A 31 A 41
51
2 A 12 D 22 B 32 C 42
52
3 A 13 A 23 C 33 A 43
53
4 CD 14 C 24 B 34 A 44
54
5 A 15 A 25 C 35 A 45
55
6 BD 16 C 26 CD 36 C 46
56
7 A 17 B 27 A 37 A 47
57
8 B 18 D 28 D 38 D 48
58
9 B 19 B 29 B 39 A 49
59

10 A 20 C 30 A 40 C 50
60

Answer for Chapter 12. Individuals, groups and teams

1 C 11 C 21 B 31 C 41 B 51
2 B 12 A 22 A 32 D 42 B 52
3 B 13 B 23 C 33 B 43 BD 53
4 B 14 D 24 B 34 C 44 B 54
5 AC 15 C 25 B 35 B 45 C 55
6 D 16 B 26 A 36 C 46 A 56
7 B 17 D 27 C 37 AC 47 C 57
8 C 18 B 28 D 38 B 48 B 58
9 B 19 D 29 A 39 A 49 C 59
10 C 20 B 30 B 40 B 50 B 60

Explanation
1 This is the explanation of informal groups see page 292 at 2.3
2 Managers have 3 options to deal with personal issues with compatibility
4 Attitude at work mean who he behave with other individuals, politics, education or religion
7 These are all related to inter personal intelligence.
9 Role Ambiguity occurs when have no knowledge about its role or act.
11 Behaving is not in the definition. See page 288 1.1
18 Plant role have Creative, imaginative, unorthodox and solves difficult problems
19 Coordinator (chairman) is mature, confident, a good chairperson and clarifies goals and delegates well
20 Shaper is Challenging, dynamic who drive and overcome obstacles. While Team worker is the one who averts
friction
21 Team can have any number of members as per its need.

68
25
38
40
41
44

Team members make different type of contribution as per Rackham and Morgan studies.
Effective team have low worker absents as all workers are satisfied.
No ideas are owned by individual for their own benefit
There is an extreme mistrust so no one share its information with other.
Every one will hide information and try to prove himself to get reward

Answer Chapter 13.

1 A 16 A 31 B 46 A 61 D
2 D 17 C 32 AC 47 A 62 D
3 AD 18 AB 33 B 48 D 63 A
4 D 19 CD 34 D 49 A 64 D
5 BC 20 D 35 BC 50 A 65 B
6 D 21 A 36 BD 51 A 66 A
7 C 22 C 37 B 52 C 67 C
8 B 23 A 38 D 53 B 68 D
74

9 D 24 B 39 A 54 A 69 D
10 B 25 CD 40 B 55 C 70 A

11
12
13
14
15

C 26 AC 41 A 56 A 71 D
A 27 B 42 B 57 B 72 B
BD 28 C 43 C 58 B 73 B
A 29 D 44 A 59 A 74 A
D 30 D 45 B 60 B 75 A

Explanation
8. Low labor turnover have no connection with high morale.
25. It refers that people will sacrifices their need for other.
27. It will case dissatisfied to worker.
31. He says that management should not pay attention on hygiene.
37. Its suggest that most people dislike work. Management should force them to work
43. These are all example of extrinsic award that management can gave and out of control of the worker.
60. Pay is the Hygiene factor.
73. Constructive performance feedback is important in job satisfaction and motivation.

Answer Chapter 14. Personal effectiveness and

communication.

1 C 16 C 31 D 46 A 61 C 76 A
2 A D 17 E 32 D 47 D 62 A 77 C
3 C 18 B 33 A 48 B 63 A 78 C
4 D 19 F 34 C 49 A 64 C 79 A
5 B 20 C 35 B 50 A 65 B 80 B
6 A 21 A 36 B 51 B 66 C 81 D
7 B 22 D 37 A 52 B 67 D 82 B
8 B 23 B 38 B 53 A 68 B 83 B
9 D 24 B 39 B 54 D 69 A 84 A
10 C D 25 B 40 D 55 C 70 C 85 D
11 B 26 A 41 D 56 A 71 B
12 D 27 E 42 B 57 B 72 B
13 D 28 D 43 A 58 D 73 A
14 A 29 C 44 A 59 C 74 A
15 B 30 B 45 D 60 C 75 C
Explanation.
83. The grapevine usually operates at the place of work and not outside it.

Answer Chapter 15.

1 B 11 B 21 B 31 A 41 B 51 A
2 C 12 A 22 A 32 C 42 C 52 B
3 D 13 A 23 A 33 D 43 A 53 C
4 A 14 B 24 A 34 B 44 D 54 B
5 B 15 E 25 D 35 D 45 A 55 D
6 BC 16 C 26 C 36 C 46 C 56 A
7 AD 17 D 27 A 37 A 47 B 57 D
8 D 18 B 28 B 38 C 48 A 58 B
9 E 19 BC 29 D 39 B 49 E 59 C
10 C 20 E 30 C 40 D 50 C 60 A
61 A
Explanation.
35. Selection test can be taken before for after the interview

Answers Chapter 16. Diversity and equal

opportunities

1
2
3
4
5
6
7
8

B 9 B 17 D
C 10 A 18 B
A 11 C 19 B
B 12 D 20 A
D 13 B 21 A
C 14 A 22 B
BC 15 D 23 C
A 16 C 24 D

Explanation.
4. The principle of equal opp. State there should be no discrimination on the basis of sex and religion beliefs.
6. Difference of pay for the same post and same job due to gender is a direct discrimination on Sex ground.
7. Because this is an act of Direct Discrimination. She was not considering because of gender or Sex issue.
8. Sex and Marital is one of the conditions of Direct Discrimination.
9. This is an example of Indirect Discrimination. See Emile Woolf page 342.
10. True because woman can't work late because they have family and children responsibilities to met.

Answer Chapter 17. Training and

development.
1 A 11 B 21 B 31 D 41 C 51
2 C 12 A 22 A 32 C 42 B 52
3 B 13 C 23 C 33 B 43 D 53
4 D 14 B 24 A 34 A 44 B 54
5 B 15 D 25 B 35 B 45 A 55
6 A 16 B 26 D 36 B 46 B 56
7 C 17 D 27 A 37 A 47 B 57
8 D 18 B 28 B 38 D 48 B 58
9 C 19 A 29 B 39 C 49 A 59
10 A 20 AD 30 A 40 A 50
60

Explanation.
46. Secondment means to send someone to other department other than its original work area for a change.
While T.P mean Job enrichment.
47. Job rotation means to transfer one person after some time to other area of the same department. While
secondment mean to other dept.
48. Its means vertical job enlargement.

Answers chapter 18.

1 D 11 D 21 C 31 B 41
51
2 A 12 E 22 B 32 A 42
52
3 B 13 A 23 F 33
43
53
4 C 14 C 24 C 34
44
54
5 A 15 D 25 A 35
45
55
6 C 16 C 26 B 36
46
56
7 B 17 D 27 C 37
47
57
8 D 18 B 28 D 38
48
58
9 A 19 E 29 C 39
49
59
10 A 20 A 30 D 40
50

60