ICAB Business and Finance Question Analysis Knowledge Level from June 2010 to Dec 2015

ICAB Accounting Question Analysis Knowledge Level frBusiness and Financeom June 2010 to Dec 2015

1. Introduction to business

1. How Key Performance Indicators (KPI’s) are used to measure the performance of an organization. (Dec-15)(marks-4)(manual page-16)
2. How would you define an organization? (Dec-13)(marks-5)(manual page-4)
3. What do organizations have in common and how do organizations differ? (Dec-13)(marks-5)(manual page-5)
4. What are KPIs? What should be the KPI of an Industrial unit? (Dec-13)(marks-5)(manual page-16)
5. Define a not‐for‐profit organization. (june-10)(marks-3)(manual page-7)
6. Is the ICAB a not‐for‐profit organization? (june-10)(marks-2)(manual page-7)
7. Define organizational goals. (june-10)(marks-3)(manual page-13)
8. Most organizations establish quantifiable operational goals. Give reasons why non‐operational goals might still be important. (june-10)(marks-5)(manual page-13)

2. Managing a business

1. When a manager delegates authority and responsibility for a task, they also delegate full accountability. Do you agree? Explain (Dec-15)(marks-3)(manual page-29)
2. What are the functions of human resource management (HRM)? Describe the four Cs model of HRM (Dec-15)(marks-8)(manual page-42)
3. Describe the delegation of authority and responsibility? (june-15) (marks-3)(manual page-28,53)
4. What are the problems of poor delegation? (june-15) (marks-7)(manual page-53)
5. Explain the term ‘hierarchy of need’ as described by Adraham Maslow. (Dec-14) (Mark-3) (manual page-47)
6. Describe the theory of X and Y by Mc Gregor. (Dec-14) (Mark-3) (manual page-46)
7. Explain about the 4 P’s marketing mix. . (Dec-14) (Mark-4) (manual page-37)
8. Explain Likert’s four Leadership style and identify the best one with justification. (june-14) (marks-4)(manual page-41)
9. What is an organizational structure? What are the building blocks in an organizational structure? (Dec-13) (marks-5) (manual page-62,63)
10. What is the hierarchy of needs suggested by Abraham Maslow for an individual’s motivation? (Dec-13)(marks-5)(manual page-47)
11. How can the management use the model while designing an employee evaluation system? 5 (Dec-13)(marks-5)(manual page-48)
12. What is marketing mix? (Dec-12) (marks-2) (manual page-36)
13. Describe the various components (known as four ‘P’s) of marketing mix. (Dec-12) (marks-6) (manual page-37)
14. What is Human Resource Management? (june-12)(marks-3)(manual page-41)
15. Describe the different approaches of Human Resource Management. (june-12)(marks-7)(manual page-41)
16. Describe different leadership styles. (june-12)(marks-6)(manual page-51)
17. Define motivation. (Dec-11) (marks-3) (manual page-47)
18. Discuss the hierarchy of needs suggested by Abraham Maslow that drives an individual’s motivation. (Dec-11) (marks-7) (manual page-47)
19. What is the hierarchy of needs suggested by Abraham Maslow for an individual’s motivation? (june-10)(marks-5)(manual page-47)
20. How management can use the model while designing an employee evaluation system? (june-10)(marks-3)(manual page-48)

3. Organizational structure and business forms

21. What are centralization and decentralization in the context of organizational management? (Dec-11) (marks-5) (manual page-71)
22. What factors affect the amount of decentralization in a business? (Dec-11) (marks-5) (manual page-71)
23. What is span of control in Management? Narrate the factors influence the span of control in an organization. (Dec-10) (marks-2+4) (manual page-73)

4. Introduction to business strategy

24. Explain the term `Supply Chain Management’-SCM process. (Dec-15)(marks-6)(manual page-119)
25. What is ‘Strategic Management’ process? (June-15) (Marks-5) (Page-97)
26. What are the economic factors affecting a business environment as described in PESTEL analysis? (june-15) (marks-4)(manual page-105)
27. What is supply chain management (SCM)? (Dec-14)(Mark-5) (Page-119)
28. Explain different stage of product life cycle. (Dec-14)(Mark-5) (Page-120)
29. What do you understand by the term strategic planning process? (june-14)(marks-4)(manual page-100)
30. What are the different stages of strategic planning? What are the benefits and drawback of strategic management in the corporate world? (june-14)(marks-6)(manual page-99,100)
31. Explain about different stages of product life cycle. 5 (Dec-13)(marks-5)(manual page-119)
32. You have developed an idea to set up a publishing house for the student of CA profession. Advise how external environmental factors might affect a publishing business using PESTEL analysis. (Dec-13)(marks-5)(manual page-105)
33. What is strategic management? (Dec-13)(marks-5)(manual page-98)
34. What are the benefits of strategic management? (Dec-13)(marks-5)(manual page-99)
35. Define span of control. (Dec-13)(marks-3)(manual page-73)
36. What factors influence the span of control in a business? (Dec-13)(marks-7)(manual page-73)
37. Define product life cycle. (june-13)(marks-3)(manual page-119)
38. Discuss the various stages of the product life cycle. (june-13)(marks-7)(manual page-120)
39. Describe the various stages of product life cycle. (Dec-12) (marks-5) (manual page-120)
40. What is the difference between risk and uncertainty? (Dec-12) (marks-5) (manual page-146)
41. What is strategic management? (june-12)(marks-3)(manual page-98)
42. Describe the benefits and drawbacks of strategic management planning. (june-12)(marks-5)(manual page-99)
43. Explain why SWOT analysis is important for corporate appraisal process. (june-12)(marks-5)(manual page-123)
44. What is strategic management? Define different levels of strategy. (june-11)(marks-6)(manual page-96,98)
45. What are the benefits and drawbacks of strategic management and planning? (june-11)(marks-4)(manual page-99)
46. Explain why SWOT analysis is important for corporate appraisal process. (Dec-10) (marks-5) (manual page-123)
47. What is Gap analysis? How does this help management in setting future strategies? (Dec-10) (marks-5) (manual page-130)
48. Define strategic management. What are the different levels of strategy? (june-10)(marks-3)(manual page-96,98)
49. What is corporate strategy? (june-10)(marks-3)(manual page-97)
50. How economic environment like inflation, interest rates, tax levels, Government spending etc. influence business decisions. (june-10)(marks-4)(manual page-108)
51. Explain about different stages of product life cycle. (june-10)(marks-50)(manual page-119)
52. You have developed an idea to set up a publishing house for the students of CA profession. Advise how external environmental factors affect publishing business using PESTEL analysis. (june-10)(marks-5)(manual page-105)

5. Introduction to risk management

53. What is risk management? Write the elements of the risk management process. (June-15)(Mark-5) (Page-153, 155)
54. Define business risk. (Dec-14)(Mark-3) (Page-150)
55. Why risk identification is important as one of the means of risk management process? (Dec-14)(Mark-3) (Page-155)
56. Distinguish between risk assessment and risk measurement. (Dec-14)(Mark-4) (Page-156)
57. Describe the different approaches of crisis management. (june-12)(marks-7)(manual page-158)
58. Define risk. How does it differ from uncertainty? (Dec-11) (marks-4) (manual page-146)
59. What risks are usually faced by business? (Dec-11) (marks-6) (manual page-148)
60. Define Risk and Uncertainty. (june-11)(marks-3)(manual page-146)
61. What are upside and downside risks? (june-11)(marks-2)(manual page-147)
62. What is business risk management? (june-11)(marks-2)(manual page-153)
63. When is risk management necessary? 4 (june-11)(marks-4)(manual page-153)
64. How does business risk management work? (june-11)(marks-4)(manual page- )
65. Define crisis management and what are the different types of business crisis. (Dec-10) (marks-2+3) (manual page-158)
66. How business crisis can be addressed. (Dec-10) (marks-5) (manual page-159)
67. How would you explain risk and uncertainty? 3 (june-10)(marks-3)(manual page-146)
68. What are the various types of financial risks? 3 (june-10)(marks-3)(manual page-151)
69. How the risks can be avoided or minimized? 4 (june-10)(marks-4)(manual page-157)

Math Question

1. June-2015 (4-b)
2. June-2011 (1-c)

6. Introduction to financial information

70. Why do business and managers need financial information? (Dec-12) (marks-4) (manual page-170)
71. Describe the qualities of good financial information. (Dec-12) (marks-7) (manual page-172)
72. What measures should be taken to ensure the security of information? (Dec-12) (marks-7) (manual page-179)
73. What is the difference between data and information? (Dec-12) (marks-2) (manual page-173)

7. The business finance function

1. Differentiate between independent projects and mutually exclusive projects. (Dec-15) (marks-3) (manual page-)
2. What important information is conveyed by the margin of safety calculation in CVP analysis? (Dec-15)(marks-5)(manual page-)
3. What is budgetary control? (Dec-14)(Mark-3) (Page-see MI)
4. What is discounted cash flow? (Dec-14)(Mark-3) (Page- see MI)
5. What is a master budget? Why do successful companies tend to use the bottom-up approach to establish a master budget? (june-14)(marks-5)(manual page-207)
6. How do companies use the budgeted income statement to improve operations? 5(june-14)(marks-5)(manual page- )
7. What do you understand by Cost Volume Profit (CVP) analysis? (Dec-13) (marks-3) (manual page-202)
8. What is break-even point? (june-13)(marks-2)(manual page-203)
9. What is Zero Based Budgeting? Is there any difference between Flexible vs. Rolling budget? (june-13)(marks-5)(manual page- )
10. Define payback period. (june-13)(marks-3)(manual page-)
11. What do you understand by Cost Volume Profit (CVP) analysis? (Dec-10) (marks-5) (manual page-202)

Math Question

1. Dec-2015 (9-b)
2. June-2015 (6-b)
3. Dec-2014 (2-b, 3-b)
4. June-2014 (5-a)
5. June-2014 (9-b)
6. Dec-2013 (3-b)
7. June-2013 (1-b)
8. June-2013 (4-b)
9. June-2013 (5-b)
10. Dec-2011 (7)
11. June-2011 (7)
12. Dec-2010 (4)
13. Dec-2010 (5-b)

8. Measuring performance

74. What role does the cost of capital play in the firm’s long-term investment decisions? (Dec-15) (marks-5) (manual page-246)

12. Write the objectives of measuring a business’ performance. Who uses performance measures? (June-2015) (Marks-5) (Page- 224)
13. What is balanced scorecard? Explain its different perspectives. (June-2015) (Marks-5) (Page- 244)
14. If a company uses the same cost of capital for evaluating all projects, which result is likely? (June-2015) (Marks-3) (Page- suggested answer-4.a)
15. What financial ratios are used to measure the liquidity position of a business? (Dec-11) (marks-2) (manual page-234)
16. What are the usual solutions to the liquidity problems in business? (Dec-11) (marks-3) (manual page-234)
17. Who uses financial performance measures and why? (Dec-11) (marks-4) (manual page-224)
18. Define balanced scorecard. (june-11)(marks-2)(manual page-244)
19. What is economic value added? How can we calculate EVA? (june-10)(marks-3)(manual page-246)
20. How can we get the followings? (june-10) (marks-10) (manual page-234)

i) Inventory turnover ratio; ii) Return on capital employed; iii) Current ratio

Iv) Quick ratio; v) Debt Equity ratio; vi) Gearing ratio; vii) Interest cover and

viii) Asset turnover

Math Question

1. Dec-2015 (5-b)
2. June-2015 (4-b)
3. Dec-2014 (9)
4. Dec-2013 (7)
5. June-2013 (2)
6. Dec-2012 (2-a)
7. Dec-2012 (4)
8. June-2012 (6)
9. Dec-2011 (2-c)
10. Dec-2011 (9-b)
11. June-2011 (3-b)
12. June-2011 (6)
13. Dec-2010 (2)
14. June-2010 (1-b)
15. June-2010 (4-a,b)

9. Working capital and treasury management

1. What is accounts receivable factoring? (Dec-15)(marks-3)(manual page-270)
2. What is the purpose of the EOQ model? What are the costs associated with holding inventory? (June-2015) (Marks-5) (page-264)
3. Describe the function of treasury management. (june-15) (marks-3)(manual page-272 and suggested answer)
4. What is receivable management? How organizations control its receivables? (Dec-14)(Mark-3) (Page-267)
5. Describe Economic Order Quantity as one of the system of Inventory control. (june-14)(marks-3)(manual page-265)
6. What should be the aim of good cash management? (june-13)(marks-3)(manual page-273)
7. What are the various costs associated with holding inventory? (june-12)(marks-4)(manual page-264)
8. What is cash operating cycle and what should be the ideal level of trade receivables? Discuss in brief. (june-12)(marks-6)(manual page-267)
9. Explain what do you understand by Accounts Receivable Management? (Dec-11) (marks-4) (manual page-267)
10. What is Economic Order Quantity (EOQ)? (june-10)(marks-3)(manual page-265)

Math Question

1. Dec-2015 (3-b)
2. Dec-2015 (8)
3. June-2015 (5-b)
4. June-2015 (3-b)
5. June-2015 (9) (page-258)
6. Dec-2014 (4-b)
7. June-2014 (5-b)
8. June-2014 (8-b)
9. Dec-2013 (6-b)
10. June-2013 (3-b)
11. Dec-2012 (2-b)
12. June-2012 (1-b)
13. June-2012 (9)
14. Dec-2011 (3)
15. Dec-2011 (10-b)
16. June-2011 (5)
17. Dec-2010 (6)
18. June-2010 (2-b)
19. June-2010 (12-b)

10. The professional accountant

11. What is meant by professional behavior of the professional accountants? (june-13)(marks-5)(manual page-298)
12. Discuss the various threats to professional principles. (june-13)(marks-5)(manual page-299)

11. Structure and regulation of the accountancy profession

12. Governance and ethics

1. What are business ethics? (Dec-15)(marks-4)(manual page-345)
2. Write down the acceptable ethical practices in business? (Dec-15)(marks-6)(manual page-345)
3. Describe business ethics in brief. How can an ethical culture be promoted? (june-15)(marks-5)(manual page-345)
4. Describe the standard common practice of business ethics. (june-14)(marks-4)(manual page-345)
5. What is Corporate Governance? (june-14)(marks-5)(manual page-333)
6. What are business ethics? What are the main functions of code of ethics? (june-13)(marks-5)(manual page-345,346)
7. What should a company have in mind relating to the objectives of code of ethics? (june-13)(marks-5)(manual page-346)
8. Define business ethics. (Dec-12) (marks-4) (manual page-345)
9. What are the acceptable minimum business ethics? (Dec-12) (marks-5) (manual page-345)
10. What is Corporate Governance and why is Corporate Governance system required? (june-12)(marks-5)(manual page-334)
11. What is good practice in corporate governance? (Dec-11) (marks-4) (manual page-337)
12. Give examples of at least 5 key elements that support good corporate governance. (Dec-11) (marks-6) (manual page-337)
13. What is Corporate Governance? (june-11)(marks-4)(manual page-333)
14. 9. What is corporate governance? What are the objectives of corporate governance? (Dec-10) (marks- 3+3) (manual page-323)
15. What are the contents of the code of Corporate Governance? (june-10)(marks-6)(manual page-359)

13. Corporate governance

16. Describe internal control? What constitutes a sound system of internal control? (June-15)(Mark-5) (Page-366)
17. What is internal control? (Dec-14)(Mark-4) (Page-366)
18. Distinguish between the responsibility of Board of Directors and Management of the company with regards to maintaining effective internal control. (Dec-14)(Mark-6) (Page-466 and suggested answer)
19. How can the corporate business world ensure ethical leadership from the Board of Directors? (june-14)(marks-6)(manual page-359)
20. What are the functions of Audit Committee? (june-14)(marks-5)(manual page-361)
21. Write in brief the constitution of Audit committee in an organization. (june-14)(marks-5)(manual page-361)
22. Explain about the code of corporate governance. (june-13)(marks-4)(manual page-358)
23. What are the important points that need to be covered in the Directors’ Report to

Shareholders prepared under section 184 of Companies Act, 1994? (June-13)(Marks-6)(Manual page-360)

24. Describe the following as per provisions of Corporate Governance guidelines as issued by the Securities & Exchange Commission of Bangladesh: (june-12)(marks-7+3)(manual page-)

i) Constitution of Board Audit Committee and its roles and responsibilities;

ii) Services restricted in the company for its statutory auditors.

25. Describe the essential requirements of Audit Committee as advised by the SEC vide circular ref.SEC/CMRRCD/2006‐158/Admin/02‐06 to comply with corporate governance. (june-11)(marks-6)(manual page-361)
26. What is cash operating cycle? (june-10)(marks-3)(manual page-261)

14. The economic environment of business and finance

1. Differentiate between price elasticity of demand and price elasticity of supply. (Dec-15)(Mark-5) (Page-391,396)
2. What is the theory of cross elasticity of demand? (Dec-14)(Mark-4) (Page-395)
3. Write the theory of price elasticity of demand. (june-14)(marks-3)(manual page-391)
4. What factors influence the supply? (Dec-12) (marks-3) (manual page-387)
5. Define equilibrium price and describe the factors that influence supply. (Dec-12) (marks-8) (manual page-387,388)
6. What is price elasticity of demand? Write the effects when demand inelasticity of a product is above zero. (Dec-12) (marks-10) (manual page-391,393)

Math Question

1. Dec-2014 (7-b)
2. June-2014 (7-b)
3. Dec-2010 (7)

15. External regulation of business

7. Why was Sarbanes-Oxley Act passed? (Dec-15)(marks-3)(manual page-422)
8. Discuss the economic advantages of international free trade. (june-12)(marks-5)(manual page-425)
9. What do you understand by the term “Insider trading of a listed company’s shares”. (june-11)(marks-4)(manual page-421)
10. What is market abuse? (june-11)(marks-3)(manual page-421)
11. What is fraudulent trading of an insolvent company? (june-11)(marks-3)(manual page-421)
12. Why was the Sarbanes‐Oxley Act passed? (june-11)(marks-5)(manual page-422)
13. 11. State the economic advantages of International Fare Trade. (Dec-10) (marks-8) (manual page-425)

16. Other

14. What is cost of capital? (june-14)(marks-2)(manual page-)
15. Define corporate responsibility for financial reports. (june-11)(marks-5)(manual page-)

Math Question

1. June-2014(3-b)

17. Short note

1. Direct cost. (Dec-12) (marks-2) (manual page-200)
2. Internal Control. (Dec-12) (marks-2) (manual page-366)
3. Economic Value Addition. (Dec-12) (marks-2) (manual page-245)
4. Duopoly. (Dec-12) (marks-2) (manual page-399)
5. Write short notes on Risk management(june-12)(marks-3)(manual page-153)
6. Corporate social responsibility(june-12)(marks-3)(manual page-345)
7. Controllable cost. (june-12)(marks-3)(manual page-201)
8. Span of control (Dec-11) (marks-2.5) (manual page-73)
9. Economic Value Addition (EVA) (Dec-11) (marks-2.5) (manual page-245)
10. Return on Capital employed (ROCE) (Dec-11) (marks-2.5) (manual page-231)
11. Internal control. (Dec-11) (marks-2.5) (manual page-399)
12. Management information system (MIS) (Dec-10) (marks-2) (manual page-177)
13. Balanced scorecard (Dec-10) (marks-2) (manual page-244)
14. Perpetual inventory methods (Dec-10) (marks-2) (manual page-266)
15. Basic trade-off: cost of holding vs. cost of running out of cash (Dec-10) (marks-2) (manual page-272)
16. Fiduciary relationship (Dec-10) (marks-2) (manual page-276)

Others:

1. If a company uses the same cost of capital for evaluating all projects, which result is likely? (June-15) (marks-3) (Suggested page-30).