ICAEW BTF - Memory Recap Questions with
Correct Answers
What are Mintzberg's 5 Ps of strategy? Correct Answ_Plan - for example a budget
Ploy - like a manoeuvre in a competitive game
Pattern - something you tend to do
Position - matching internal and external factors
Perspective - what is your attitude to the environment?
What are the stages of the rational planning model? Correct Answ_SWOT analysis (internal
and external)
Corporate appraisal
Mission, goals and objectives
GAP (difference between the appraisal and the mission)
Strategic choice
Implementation --> review and control (feedback loop)
,What is cost leadership, differentiation, and focuses? Correct Answ_Cost leadership simply
about producing at the lowest cost in the industry as a whole (note that not necessarily charging
the lowest prices
Differentiation about providing a product or service that the industry believes to be unique
Focus/niche means restricting activities to one section of the market (can have both a cost focus
niche and differentiation niche)
When would we use a SWOT analysis? Correct Answ_At the corporate appraisal stage
What is risk exposure? Correct Answ_Simply a measure of the way a business is faced by
risks, whether financial/business/etc.
What are the fundamental and enhancing qualitative characteristics of financial reporting?
Correct Answ_Fundamental: relevance and faithfulness of representation
Enhancing: understandability, comparability, verifiability and timeliness
,What is tactical information? What about operational, strategic, and planning? Correct
Answ_Helps deal with short-term issues and opportunities. Operational is to do with the day-to-
day, strategic information has longer term concerns, and planning information is explicitly to do
with plans.
When would we like to use a management information system? Correct Answ_To help us
make STRUCTURED decisions. These can be reduced to a series of rules which, if followed,
will lead to the correct decision being made.
What are the factors for a balanced scorecard model? What are some example metrics?
Correct Answ_Customer: satisfaction, returns rates, etc.
Internal business processes: product quality, failure rates, etc.
Innovation and learning: employee retention, time to market for new products, etc.
Financial: gross margin, net margin, etc.
, What is a fundamental accounting principal with regards to assets and liabilities? Correct
Answ_When in doubt, understate assets and overstate liabilities
What does integrity imply? Correct Answ_Professional responsibility
Is anyone allowed to say they are an accountant and offer a full range of accountancy services?
Correct Answ_No - while accountant is not a protected term, there are some things (like
insolvency/statutory audit) that require certification
What is the FRRP and what do they do? Correct Answ_Financial reporting review panel -
they investigate departures from accounting standards by large companies such as those listed on
LSE
For the AGM of a public company, which committees must be represented by their respected
chairs?
Can the chairman be a member of the remuneration committee? Correct Answ_Audit,
remuneration and nomination
Correct Answers
What are Mintzberg's 5 Ps of strategy? Correct Answ_Plan - for example a budget
Ploy - like a manoeuvre in a competitive game
Pattern - something you tend to do
Position - matching internal and external factors
Perspective - what is your attitude to the environment?
What are the stages of the rational planning model? Correct Answ_SWOT analysis (internal
and external)
Corporate appraisal
Mission, goals and objectives
GAP (difference between the appraisal and the mission)
Strategic choice
Implementation --> review and control (feedback loop)
,What is cost leadership, differentiation, and focuses? Correct Answ_Cost leadership simply
about producing at the lowest cost in the industry as a whole (note that not necessarily charging
the lowest prices
Differentiation about providing a product or service that the industry believes to be unique
Focus/niche means restricting activities to one section of the market (can have both a cost focus
niche and differentiation niche)
When would we use a SWOT analysis? Correct Answ_At the corporate appraisal stage
What is risk exposure? Correct Answ_Simply a measure of the way a business is faced by
risks, whether financial/business/etc.
What are the fundamental and enhancing qualitative characteristics of financial reporting?
Correct Answ_Fundamental: relevance and faithfulness of representation
Enhancing: understandability, comparability, verifiability and timeliness
,What is tactical information? What about operational, strategic, and planning? Correct
Answ_Helps deal with short-term issues and opportunities. Operational is to do with the day-to-
day, strategic information has longer term concerns, and planning information is explicitly to do
with plans.
When would we like to use a management information system? Correct Answ_To help us
make STRUCTURED decisions. These can be reduced to a series of rules which, if followed,
will lead to the correct decision being made.
What are the factors for a balanced scorecard model? What are some example metrics?
Correct Answ_Customer: satisfaction, returns rates, etc.
Internal business processes: product quality, failure rates, etc.
Innovation and learning: employee retention, time to market for new products, etc.
Financial: gross margin, net margin, etc.
, What is a fundamental accounting principal with regards to assets and liabilities? Correct
Answ_When in doubt, understate assets and overstate liabilities
What does integrity imply? Correct Answ_Professional responsibility
Is anyone allowed to say they are an accountant and offer a full range of accountancy services?
Correct Answ_No - while accountant is not a protected term, there are some things (like
insolvency/statutory audit) that require certification
What is the FRRP and what do they do? Correct Answ_Financial reporting review panel -
they investigate departures from accounting standards by large companies such as those listed on
LSE
For the AGM of a public company, which committees must be represented by their respected
chairs?
Can the chairman be a member of the remuneration committee? Correct Answ_Audit,
remuneration and nomination
