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Free Questions › ACCA › Business and Technology
Free ACCA Business and Technology Practice Questions & Answers
300 exam-style Business and Technology questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 61
Which of the following best describes a mixed economy?
Select an option first.
Correct answer: B — An economy combining both private enterprise and government intervention
Explanation: A mixed economy combines free market private enterprise with government intervention and public ownership of some industries. Pure command economies have total state control; pure market economies have no government intervention.
Question 62
A SWOT analysis examines:
Select an option first.
Correct answer: B — Strengths, Weaknesses, Opportunities, and Threats facing an organisation
Explanation: SWOT examines internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats). PESTEL covers macro-environmental factors. SWOT is used alongside PESTEL for a complete strategic view.
Question 63
Unemployment caused by a general downturn in economic activity is called:
Select an option first.
Correct answer: C — Cyclical unemployment
Explanation: Cyclical unemployment occurs when reduced economic activity lowers demand for labour. Frictional unemployment arises from job transitions. Structural unemployment results from industry decline. Seasonal unemployment reflects demand patterns.
Question 64
A task culture, as described by Charles Handy, is typically found in:
Select an option first.
Correct answer: B — Project-based or matrix organisations
Explanation: Task culture focuses on getting the job done and is common in project teams and matrix organisations. Role culture suits bureaucracies. Power culture suits founder-led firms. Person culture suits professional partnerships.
Question 65
Which of the following is an example of a supply-side policy?
Select an option first.
Correct answer: C — Providing training programmes to improve workforce skills
Explanation: Supply-side policies aim to improve productive capacity — e.g. education and training, deregulation, reducing business taxes. Demand-side policies (fiscal/monetary) manage aggregate demand.
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Question 66
An increase in the price of a complementary good will most likely:
Select an option first.
Correct answer: B — Decrease demand for the original good
Explanation: Complementary goods are consumed together (e.g. cars and petrol). If petrol prices rise, demand for cars is likely to fall. Demand for the original good and its complement move in opposite directions.
Question 67
A cultural web, as described by Johnson and Scholes, is used to:
Select an option first.
Correct answer: B — Map the cultural paradigm of an organisation through stories, rituals, symbols, and control systems
Explanation: The cultural web (Johnson and Scholes) reveals an organisation's culture through six elements: stories, rituals and routines, symbols, organisational structure, control systems, and power structures. It is a cultural diagnostic tool.
Question 68
Which of the following is the most likely effect of a government implementing an expansionary fiscal policy?
Select an option first.
Correct answer: B — An increase in aggregate demand due to higher government spending or lower taxes
Explanation: Expansionary fiscal policy involves increasing public spending or cutting taxes, boosting disposable income and aggregate demand. This can stimulate growth but may widen the budget deficit and potentially increase inflation.
Question 69
A firm operating in a perfectly competitive market is best described as:
Select an option first.
Correct answer: B — A price taker that accepts the market price as given
Explanation: In perfect competition, many identical firms compete, no single firm has market power, and all are price takers. Monopolies are price makers. Perfect competition assumes free entry and exit with no barriers.
Question 70
Exchange rate movements affect businesses by:
Select an option first.
Correct answer: B — Affecting the price of imports and exports, influencing international competitiveness
Explanation: A stronger domestic currency makes exports more expensive abroad and imports cheaper, affecting international competitiveness. Even domestic businesses may be affected through imported materials or competing imported goods.
Question 71
Which of the following would increase the bargaining power of buyers in Porter's Five Forces model?
Select an option first.
Correct answer: C — Buyers purchase in large volumes and could easily switch suppliers
Explanation: Buyer power is high when buyers purchase large volumes, face low switching costs, and have many alternative suppliers. Fragmented buyers, differentiated products, and high switching costs reduce buyer power.
Question 72
Which of the following would increase the threat of new entrants in an industry?
Select an option first.
Correct answer: C — Low economies of scale and few regulatory barriers
Explanation: Low barriers to entry — minimal capital requirements, no strong regulation, weak brands, and no economies of scale — make it easier for new firms to enter. High barriers deter new entrants.
Question 73
Which of the following best describes corporate social responsibility (CSR)?
Select an option first.
Correct answer: B — A business approach that considers its impact on society, the environment, and stakeholders beyond just profit
Explanation: CSR involves businesses voluntarily considering their broader social, environmental, and ethical impacts alongside financial performance. It goes beyond legal compliance and shareholder returns.
Question 74
A government reduces income tax rates. The most likely immediate effect on businesses is:
Select an option first.
Correct answer: B — Increased consumer disposable income, potentially boosting demand for goods and services
Explanation: Lower income tax increases consumers' disposable income, stimulating spending and potentially raising demand for businesses' goods and services. This is a key fiscal policy transmission mechanism.
Question 75
Which level of Anthony's hierarchy uses strategic information to support long-term planning?
Select an option first.
Correct answer: C — Strategic level
Explanation: Strategic-level managers use long-term, external, and summarised information. Operational level uses detailed, real-time, internal data for day-to-day decisions. Tactical level uses medium-term information for planning and control.
Question 76
An Executive Information System (EIS) is primarily designed for:
Select an option first.
Correct answer: B — Supporting senior management with strategic decision-making
Explanation: EIS provides senior executives with summarised, strategic information to support high-level decisions. Transaction processing is handled by TPS. Payroll is an operational HR system. Inventory tracking is typically a management information system function.
Question 77
A Transaction Processing System (TPS) is best described as:
Select an option first.
Correct answer: B — A system that captures and processes day-to-day business transactions
Explanation: A TPS captures, stores, and processes routine daily transactions such as sales and payroll. Decision Support Systems model scenarios. Management Information Systems provide summaries. EIS supports executive decisions.
Question 78
Good quality information should be:
Select an option first.
Correct answer: B — Accurate, timely, complete, and relevant to the user
Explanation: Quality information has attributes including accuracy, timeliness, completeness, relevance, and being understandable. It should be accessible to whoever needs it and provided as often as needed.
Question 79
A Management Information System (MIS) is primarily used to:
Select an option first.
Correct answer: B — Produce regular structured reports for middle management to monitor and control operations
Explanation: MIS produces routine, structured reports for middle managers to monitor performance. TPS handles transactions. EIS supports strategic decisions. DSS models what-if scenarios.
Question 80
Data differs from information in that:
Select an option first.
Correct answer: B — Data is raw, unprocessed facts; information is data that has been processed into a meaningful form
Explanation: Data consists of raw, unprocessed facts and figures. When data is processed, organised, and given context, it becomes information that is meaningful to the recipient.
Question 81
The acronym ERP in a business context stands for:
Select an option first.
Correct answer: B — Enterprise Resource Planning
Explanation: ERP (Enterprise Resource Planning) is an integrated software system that manages core business processes — finance, HR, supply chain, manufacturing — in a single platform.
Question 82
Cloud computing in a business context refers to:
Select an option first.
Correct answer: B — Delivering computing services over the internet on a pay-as-you-use basis
Explanation: Cloud computing delivers IT resources — storage, applications, processing power — over the internet. It contrasts with on-premise local servers or desktop-only installations.
Question 83
Which of the following is an example of a physical control to protect information systems?
Select an option first.
Correct answer: C — Locked server rooms and access badges
Explanation: Physical controls protect hardware and facilities — e.g. locked rooms, CCTV, access badges. Passwords, encryption, and firewalls are logical or technical controls protecting data and systems digitally.
Question 84
Encryption of data primarily protects against:
Select an option first.
Correct answer: B — Unauthorised reading of data during transmission or storage
Explanation: Encryption converts data into an unreadable format, protecting confidentiality during transmission or storage. Even if intercepted, the data cannot be read without the decryption key.
Question 85
A firewall is best described as:
Select an option first.
Correct answer: B — A system that monitors and controls incoming and outgoing network traffic based on rules
Explanation: A firewall is a network security system that monitors and filters traffic based on predefined security rules. It is not a physical wall, backup system, or encryption tool.
Question 86
Which of the following best describes phishing?
Select an option first.
Correct answer: B — Fraudulent attempts to obtain sensitive information by disguising as a trustworthy source
Explanation: Phishing uses deceptive emails or websites impersonating trusted sources to steal credentials. Malware installation, DDoS attacks, and exploiting software bugs are distinct attack types.
Question 87
Data backup is primarily important because:
Select an option first.
Correct answer: B — It ensures data can be recovered in the event of loss, corruption, or disaster
Explanation: Data backup creates copies of data so it can be restored after loss, corruption, or system failure. It does not speed up processing or prevent unauthorised access.
Question 88
Which of the following is a key principle of data protection legislation?
Select an option first.
Correct answer: B — Personal data should be held only for as long as necessary and kept accurate and secure
Explanation: Data protection principles include data minimisation, accuracy, storage limitation, and security. Personal data should not be held indefinitely, must be kept secure, and cannot be freely shared.
Question 89
A Disaster Recovery Plan (DRP) is designed to:
Select an option first.
Correct answer: B — Enable an organisation to restore IT systems and data after a major failure or disaster
Explanation: A DRP outlines how an organisation will restore IT functions after a disaster such as fire, cyber-attack, or hardware failure. It does not prevent failures or monitor staff.
Question 90
The concept of Big Data refers to:
Select an option first.
Correct answer: B — Extremely large data sets that require specialised tools to store, process, and analyse
Explanation: Big Data describes datasets so large and complex that traditional data processing tools cannot handle them efficiently. It is characterised by volume, velocity, and variety.
More free ACCA topics
Management Accounting401
Financial Accounting400
Corporate and Business Law400
Performance Management400
Financial Reporting400
Financial Management400
Strategic Business Reporting400
Advanced Financial Management400
Advanced Performance Management400
Advanced Taxation400
Taxation300
Audit and Assurance300
Strategic Business Leader300
Advanced Audit and Assurance296
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