2026 ACCA Strategic Professional Level Exam
New Latest Version with All Questions, 100%
Correct Answers and Rationale
PAPER SBL: STRATEGIC BUSINESS LEADER
Essentials - 45 Questions
The SBL exam is based on an integrated case study containing multiple assignments, testing both
technical and professional skills .
Question 1
You are a strategic advisor to the board of a multinational manufacturing company facing declining
market share and increasing competition. The CEO asks you to analyze the external environment. Which
framework would be most appropriate for this analysis?
a) SWOT analysis
b) PESTEL analysis
c) Boston Consulting Group matrix
d) Ansoff's matrix
Correct Answer: b) PESTEL analysis
Rationale: PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analyzes the
macro-environmental factors affecting an organization. SWOT considers both internal and external; BCG
matrix analyzes product portfolio; Ansoff's matrix analyzes growth strategies.
Question 2
In the context of corporate governance, what is the primary role of non-executive directors?
a) Managing day-to-day operations
b) Providing challenge and scrutiny to executive management
c) Preparing financial statements
d) Marketing the company's products
Correct Answer: b) Providing challenge and scrutiny to executive management
Rationale: Non-executive directors bring independence and experience to provide objective challenge,
scrutiny, and oversight of executive decisions, protecting shareholder interests.
Question 3
Which of the following is a key feature of the UK Corporate Governance Code?
a) The CEO should also be the Chair
b) There should be a clear division between the roles of Chair and CEO
c) All directors should be executives
d) The audit committee is optional
Correct Answer: b) There should be a clear division between the roles of Chair and CEO
Rationale: The UK Code recommends separation of Chair and CEO roles to ensure balance of power and
authority and prevent excessive concentration of power.
Question 4
According to Porter's Five Forces, which force is likely to be strong when there are few buyers and many
sellers?
a) Threat of new entrants
b) Bargaining power of buyers
c) Threat of substitutes
,d) Rivalry among existing competitors
Correct Answer: b) Bargaining power of buyers
Rationale: Buyers have strong bargaining power when they are few in number, purchase large volumes,
or face low switching costs, enabling them to demand lower prices or better terms.
Question 5
What is the primary purpose of an organization's risk appetite?
a) To eliminate all risks
b) To define the amount and type of risk the organization is willing to accept
c) To transfer all risks to insurance
d) To avoid making any decisions
Correct Answer: b) To define the amount and type of risk the organization is willing to accept
Rationale: Risk appetite sets the boundaries for risk-taking, guiding strategic decisions and resource
allocation by defining acceptable levels of risk exposure.
Question 6
The board of directors is considering a major acquisition. Which financial metric would be most
appropriate for evaluating this strategic investment?
a) Payback period
b) Net Present Value (NPV)
c) Accounting rate of return
d) Earnings per share growth
Correct Answer: b) Net Present Value (NPV)
Rationale: NPV considers the time value of money and all future cash flows, providing the most
comprehensive measure of value creation for strategic investment decisions.
Question 7
An organization is implementing a balanced scorecard. Which perspective focuses on employee skills and
organizational culture?
a) Financial perspective
b) Customer perspective
c) Internal process perspective
d) Learning and growth perspective
Correct Answer: d) Learning and growth perspective
Rationale: The learning and growth perspective addresses employee training, skills, organizational
culture, and innovation capabilities that support long-term success.
Question 8
Which of the following is an example of a preventative control in a risk management framework?
a) Internal audit reviews
b) Segregation of duties
c) Variance analysis
d) Physical inventory counts
Correct Answer: b) Segregation of duties
Rationale: Segregation of duties prevents errors or fraud by ensuring no single individual has control
over all aspects of a transaction. Detective controls identify issues after they occur.
Question 9
A company is considering outsourcing its IT function. Which strategic management tool would best
evaluate this decision?
a) PESTEL analysis
,b) Value chain analysis
c) BCG matrix
d) Ansoff's matrix
Correct Answer: b) Value chain analysis
Rationale: Value chain analysis identifies primary and support activities, helping determine which
activities are core competencies and which could be outsourced to improve efficiency.
Question 10
According to Mendelow's stakeholder matrix, stakeholders with high power and high interest should be
managed by:
a) Monitoring only
b) Keeping informed
c) Keeping satisfied
d) Key players - actively engaged
Correct Answer: d) Key players - actively engaged
Rationale: Stakeholders with high power and high interest are key players who require close engagement
and active management of their expectations.
Question 11
The ethical principle of integrity in the ACCA Code of Ethics requires members to:
a) Be straightforward and honest in professional relationships
b) Maintain professional knowledge and skill
c) Respect the confidentiality of information
d) Act in accordance with relevant laws
Correct Answer: a) Be straightforward and honest in professional relationships
Rationale: Integrity requires members to be straightforward and honest in all professional and business
relationships, not knowingly be associated with misleading information.
Question 12
A company's board is concerned about climate change risks. Which reporting framework would best
address these concerns?
a) IFRS 15 Revenue from Contracts with Customers
b) TCFD (Task Force on Climate-related Financial Disclosures)
c) IAS 16 Property, Plant and Equipment
d) IFRS 16 Leases
Correct Answer: b) TCFD (Task Force on Climate-related Financial Disclosures)
Rationale: TCFD provides a framework for disclosing climate-related financial risks and opportunities
across governance, strategy, risk management, and metrics and targets.
Question 13
What is the primary purpose of a company's code of ethics?
a) To maximize shareholder returns
b) To provide guidance on acceptable behavior and decision-making
c) To replace legal requirements
d) To increase employee workload
Correct Answer: b) To provide guidance on acceptable behavior and decision-making
Rationale: A code of ethics sets out principles and standards to guide employee behavior and decision-
making, promoting integrity and ethical conduct throughout the organization.
Question 14
The concept of "creative accounting" refers to:
, a) Preparing financial statements in accordance with GAAP
b) Using accounting choices to present financial results in a favorable light while technically complying
with rules
c) Developing new accounting standards
d) Auditing financial statements
Correct Answer: b) Using accounting choices to present financial results in a favorable light while
technically complying with rules
Rationale: Creative accounting involves exploiting flexibility in accounting standards to manipulate
reported results, potentially misleading stakeholders.
Question 15
Which of the following is a key component of the COSO internal control framework?
a) Control environment
b) Market analysis
c) Product development
d) Customer service
Correct Answer: a) Control environment
Rationale: The COSO framework includes five components: control environment, risk assessment,
control activities, information and communication, and monitoring activities.
Question 16
A company is expanding into a new country with significant cultural differences. Which aspect of the
external environment is most relevant?
a) Legal factors
b) Economic factors
c) Socio-cultural factors
d) Technological factors
Correct Answer: c) Socio-cultural factors
Rationale: Socio-cultural factors include cultural norms, values, and consumer behavior patterns that
significantly impact business operations in new markets.
Question 17
What is the primary objective of corporate governance?
a) Maximizing executive compensation
b) Facilitating effective, entrepreneurial, and prudent management that delivers long-term success
c) Minimizing tax payments
d) Avoiding all business risks
Correct Answer: b) Facilitating effective, entrepreneurial, and prudent management that delivers long-
term success
Rationale: Good corporate governance promotes transparency, accountability, and sound decision-
making to deliver sustainable long-term value for stakeholders.
Question 18
The "agency problem" in corporate governance refers to:
a) Conflicts between shareholders and tax authorities
b) Conflicts between principals (shareholders) and agents (managers)
c) Conflicts between competitors
d) Conflicts between suppliers and customers
Correct Answer: b) Conflicts between principals (shareholders) and agents (managers)
Rationale: Agency theory addresses conflicts of interest between owners and managers, where managers
may prioritize personal interests over shareholder wealth maximization.
New Latest Version with All Questions, 100%
Correct Answers and Rationale
PAPER SBL: STRATEGIC BUSINESS LEADER
Essentials - 45 Questions
The SBL exam is based on an integrated case study containing multiple assignments, testing both
technical and professional skills .
Question 1
You are a strategic advisor to the board of a multinational manufacturing company facing declining
market share and increasing competition. The CEO asks you to analyze the external environment. Which
framework would be most appropriate for this analysis?
a) SWOT analysis
b) PESTEL analysis
c) Boston Consulting Group matrix
d) Ansoff's matrix
Correct Answer: b) PESTEL analysis
Rationale: PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analyzes the
macro-environmental factors affecting an organization. SWOT considers both internal and external; BCG
matrix analyzes product portfolio; Ansoff's matrix analyzes growth strategies.
Question 2
In the context of corporate governance, what is the primary role of non-executive directors?
a) Managing day-to-day operations
b) Providing challenge and scrutiny to executive management
c) Preparing financial statements
d) Marketing the company's products
Correct Answer: b) Providing challenge and scrutiny to executive management
Rationale: Non-executive directors bring independence and experience to provide objective challenge,
scrutiny, and oversight of executive decisions, protecting shareholder interests.
Question 3
Which of the following is a key feature of the UK Corporate Governance Code?
a) The CEO should also be the Chair
b) There should be a clear division between the roles of Chair and CEO
c) All directors should be executives
d) The audit committee is optional
Correct Answer: b) There should be a clear division between the roles of Chair and CEO
Rationale: The UK Code recommends separation of Chair and CEO roles to ensure balance of power and
authority and prevent excessive concentration of power.
Question 4
According to Porter's Five Forces, which force is likely to be strong when there are few buyers and many
sellers?
a) Threat of new entrants
b) Bargaining power of buyers
c) Threat of substitutes
,d) Rivalry among existing competitors
Correct Answer: b) Bargaining power of buyers
Rationale: Buyers have strong bargaining power when they are few in number, purchase large volumes,
or face low switching costs, enabling them to demand lower prices or better terms.
Question 5
What is the primary purpose of an organization's risk appetite?
a) To eliminate all risks
b) To define the amount and type of risk the organization is willing to accept
c) To transfer all risks to insurance
d) To avoid making any decisions
Correct Answer: b) To define the amount and type of risk the organization is willing to accept
Rationale: Risk appetite sets the boundaries for risk-taking, guiding strategic decisions and resource
allocation by defining acceptable levels of risk exposure.
Question 6
The board of directors is considering a major acquisition. Which financial metric would be most
appropriate for evaluating this strategic investment?
a) Payback period
b) Net Present Value (NPV)
c) Accounting rate of return
d) Earnings per share growth
Correct Answer: b) Net Present Value (NPV)
Rationale: NPV considers the time value of money and all future cash flows, providing the most
comprehensive measure of value creation for strategic investment decisions.
Question 7
An organization is implementing a balanced scorecard. Which perspective focuses on employee skills and
organizational culture?
a) Financial perspective
b) Customer perspective
c) Internal process perspective
d) Learning and growth perspective
Correct Answer: d) Learning and growth perspective
Rationale: The learning and growth perspective addresses employee training, skills, organizational
culture, and innovation capabilities that support long-term success.
Question 8
Which of the following is an example of a preventative control in a risk management framework?
a) Internal audit reviews
b) Segregation of duties
c) Variance analysis
d) Physical inventory counts
Correct Answer: b) Segregation of duties
Rationale: Segregation of duties prevents errors or fraud by ensuring no single individual has control
over all aspects of a transaction. Detective controls identify issues after they occur.
Question 9
A company is considering outsourcing its IT function. Which strategic management tool would best
evaluate this decision?
a) PESTEL analysis
,b) Value chain analysis
c) BCG matrix
d) Ansoff's matrix
Correct Answer: b) Value chain analysis
Rationale: Value chain analysis identifies primary and support activities, helping determine which
activities are core competencies and which could be outsourced to improve efficiency.
Question 10
According to Mendelow's stakeholder matrix, stakeholders with high power and high interest should be
managed by:
a) Monitoring only
b) Keeping informed
c) Keeping satisfied
d) Key players - actively engaged
Correct Answer: d) Key players - actively engaged
Rationale: Stakeholders with high power and high interest are key players who require close engagement
and active management of their expectations.
Question 11
The ethical principle of integrity in the ACCA Code of Ethics requires members to:
a) Be straightforward and honest in professional relationships
b) Maintain professional knowledge and skill
c) Respect the confidentiality of information
d) Act in accordance with relevant laws
Correct Answer: a) Be straightforward and honest in professional relationships
Rationale: Integrity requires members to be straightforward and honest in all professional and business
relationships, not knowingly be associated with misleading information.
Question 12
A company's board is concerned about climate change risks. Which reporting framework would best
address these concerns?
a) IFRS 15 Revenue from Contracts with Customers
b) TCFD (Task Force on Climate-related Financial Disclosures)
c) IAS 16 Property, Plant and Equipment
d) IFRS 16 Leases
Correct Answer: b) TCFD (Task Force on Climate-related Financial Disclosures)
Rationale: TCFD provides a framework for disclosing climate-related financial risks and opportunities
across governance, strategy, risk management, and metrics and targets.
Question 13
What is the primary purpose of a company's code of ethics?
a) To maximize shareholder returns
b) To provide guidance on acceptable behavior and decision-making
c) To replace legal requirements
d) To increase employee workload
Correct Answer: b) To provide guidance on acceptable behavior and decision-making
Rationale: A code of ethics sets out principles and standards to guide employee behavior and decision-
making, promoting integrity and ethical conduct throughout the organization.
Question 14
The concept of "creative accounting" refers to:
, a) Preparing financial statements in accordance with GAAP
b) Using accounting choices to present financial results in a favorable light while technically complying
with rules
c) Developing new accounting standards
d) Auditing financial statements
Correct Answer: b) Using accounting choices to present financial results in a favorable light while
technically complying with rules
Rationale: Creative accounting involves exploiting flexibility in accounting standards to manipulate
reported results, potentially misleading stakeholders.
Question 15
Which of the following is a key component of the COSO internal control framework?
a) Control environment
b) Market analysis
c) Product development
d) Customer service
Correct Answer: a) Control environment
Rationale: The COSO framework includes five components: control environment, risk assessment,
control activities, information and communication, and monitoring activities.
Question 16
A company is expanding into a new country with significant cultural differences. Which aspect of the
external environment is most relevant?
a) Legal factors
b) Economic factors
c) Socio-cultural factors
d) Technological factors
Correct Answer: c) Socio-cultural factors
Rationale: Socio-cultural factors include cultural norms, values, and consumer behavior patterns that
significantly impact business operations in new markets.
Question 17
What is the primary objective of corporate governance?
a) Maximizing executive compensation
b) Facilitating effective, entrepreneurial, and prudent management that delivers long-term success
c) Minimizing tax payments
d) Avoiding all business risks
Correct Answer: b) Facilitating effective, entrepreneurial, and prudent management that delivers long-
term success
Rationale: Good corporate governance promotes transparency, accountability, and sound decision-
making to deliver sustainable long-term value for stakeholders.
Question 18
The "agency problem" in corporate governance refers to:
a) Conflicts between shareholders and tax authorities
b) Conflicts between principals (shareholders) and agents (managers)
c) Conflicts between competitors
d) Conflicts between suppliers and customers
Correct Answer: b) Conflicts between principals (shareholders) and agents (managers)
Rationale: Agency theory addresses conflicts of interest between owners and managers, where managers
may prioritize personal interests over shareholder wealth maximization.
