Testbank
to accompany
Accountinginformation
systems
5thedition
by
Parkesetal.
© John Wiley & Sons Australia, Ltd 2017
SCHOLARVAULT
, Chapter 2: Business processes
Chapter 2: Business processes
Multiple-choice questions
1. Which are the three levels that strategy can be seen to operate at?
(i) The internal level.
(ii) The external level.
(iii) The business portfolio level.
(iv) The inter-organisation level.
(v) The intra-organisation level.
(vi) The competitive level.
a. (i) (ii) (vi)
*b. (i) (iii) (vi)
c. (iii) (iv) (v)
d. (iv) (v) (iii)
Correct answer: b
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
2. An example of a strategic level decision would be:
a. determining the quantity of raw materials to purchase.
b. appointing a new line manager responsible for running the delivery
department.
c. reconfiguring the production line design to eliminate wasted time due to
bottlenecks.
*d. deciding whether or not to acquire the remaining shares of a partially owned
subsidiary.
Correct answer: d
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
© John Wiley & Sons Australia, Ltd 2017 2.1
SCHOLARVAULT
, Testbank to accompany: Accounting information systems 5e by Parkes et al.
3. Michael Porter sees a business as having two options when deciding on a strategy.
These two options are:
a. economies of scale and entry barrier.
b. economies of scope and differentiation.
c. price competition and product abundance.
*d. differentiation and cost leadership.
Correct answer: d
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
4. Michael Porter sees the implementation and attainment of strategies as consisting of five
steps. Which of the following is NOT one of the steps?
a. Fit.
b. Uniqueness.
*c. Operational efficiency.
d. Sustainability.
Correct answer: c
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
5. Michael Porter puts forward five forces that shape the industry in which a firm
operates. Which of the following is NOT one of the forces?
a. Threat of new entrants.
*b. Legislative power of the government.
c. Rivalry among existing competitors.
d. Threat of substitute products or services.
Correct answer: b
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
6. There are two perspectives of organisational design:
a. logical and physical.
b. internal and external.
*c. functional and business process.
d. scientific and practical.
Correct answer: c
Learning objective 2.2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations.
Learning objective 2.3 – identify and describe a business process.
© John Wiley & Sons Australia, Ltd 2017 2.2
SCHOLARVAULT
to accompany
Accountinginformation
systems
5thedition
by
Parkesetal.
© John Wiley & Sons Australia, Ltd 2017
SCHOLARVAULT
, Chapter 2: Business processes
Chapter 2: Business processes
Multiple-choice questions
1. Which are the three levels that strategy can be seen to operate at?
(i) The internal level.
(ii) The external level.
(iii) The business portfolio level.
(iv) The inter-organisation level.
(v) The intra-organisation level.
(vi) The competitive level.
a. (i) (ii) (vi)
*b. (i) (iii) (vi)
c. (iii) (iv) (v)
d. (iv) (v) (iii)
Correct answer: b
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
2. An example of a strategic level decision would be:
a. determining the quantity of raw materials to purchase.
b. appointing a new line manager responsible for running the delivery
department.
c. reconfiguring the production line design to eliminate wasted time due to
bottlenecks.
*d. deciding whether or not to acquire the remaining shares of a partially owned
subsidiary.
Correct answer: d
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
© John Wiley & Sons Australia, Ltd 2017 2.1
SCHOLARVAULT
, Testbank to accompany: Accounting information systems 5e by Parkes et al.
3. Michael Porter sees a business as having two options when deciding on a strategy.
These two options are:
a. economies of scale and entry barrier.
b. economies of scope and differentiation.
c. price competition and product abundance.
*d. differentiation and cost leadership.
Correct answer: d
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
4. Michael Porter sees the implementation and attainment of strategies as consisting of five
steps. Which of the following is NOT one of the steps?
a. Fit.
b. Uniqueness.
*c. Operational efficiency.
d. Sustainability.
Correct answer: c
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
5. Michael Porter puts forward five forces that shape the industry in which a firm
operates. Which of the following is NOT one of the forces?
a. Threat of new entrants.
*b. Legislative power of the government.
c. Rivalry among existing competitors.
d. Threat of substitute products or services.
Correct answer: b
Learning objective 2.1 – identify and interpret the components of organisational strategy and
mission.
6. There are two perspectives of organisational design:
a. logical and physical.
b. internal and external.
*c. functional and business process.
d. scientific and practical.
Correct answer: c
Learning objective 2.2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations.
Learning objective 2.3 – identify and describe a business process.
© John Wiley & Sons Australia, Ltd 2017 2.2
SCHOLARVAULT
