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Question 1

Topic: Porter’s Five Forces

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Question 1

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Question 2

Topic: KPIs
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Question 3

Topic: Porter’s Five Forces

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Question 4

Topic: Downsizing
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Question 5

Topic: BCG matrix

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Question 6

Topic: Marketing Mix

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Question 7

Topic: Business Ethics

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Question 8

Topic: Market Segmentation

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Question 9

Topic: Porter’s Five Forces

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Question 10

Topic: Outsourcing
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Question 11

Topic: Benchmarking
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Question 12

Topic: Product life cycle and marketing mix

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Question 13

Topic: Porter’s Five Forces

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Question 14:

Topic: Internal Analysis

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Question 15

Topic: SWOT analysis

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Question 16

Topic: Cost leadership strategy

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Question 17

Topics: Internal / external analysis MCQs

Select the most appropriate option and give reasons for your answer to (i)

(i)

(ii)
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(i) Option B

(ii) Option D
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Question 18

Topic: KPIs
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Question 19

Topic: IT controls and Technological disruption

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Question 20

Topic: Porter’s five forces linked with internet technology

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Question 21

Topic: BCG matrix

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Question 22

Topic: Product life cycle and marketing mix

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Question 23

Topic: Outsourcing
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Question 24

Topic: Porter’s five forces

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Question 25

Topic: Differentiation strategy

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Question 26

Topic: PESTEL (Political Factors)

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Question 27

Topic: Porter’s Five Forces

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Question 28

Topic: External analysis

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Question 29

Topic: Critical Success Factors

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Question 30

Topic: Generic types of industries

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Question 31

Topic: IT risks
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Question 32

Topic: BCG
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Question 33

Topic: Value Chain

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Question 34

Topic: Product life cycle

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Question 35

Topic: IT Controls
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Question 36

Topic: SWOT analysis & KPIs

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Question 37

Topic: Ethics
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Question 38

Topic: BCG
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Question 39

Topic: Risks and IT controls

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Question 40

Topic: Marketing Mix

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Question 41

Topic: Value Chain

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Question 42

Topic: AAA model

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Suggested Solution to Q42

Step 1: What are the facts of the case?
The facts are that the auditor has uncovered what he believes to be a bribe and has, in turn, been offered a bribe to ignore or
overlook it.

Step 2: What are the ethical issues in the case?

The ethical issue is whether or not an auditor should accept a bribe. In accepting the bribe he would be acting illegally and would
also be negligent of his professional duties.

Step 3: What are the norms, principles, and values related to the case?
The norms, principles, and values are that auditors are assumed (by shareholders and others active in capital markets) to have
impeccable integrity and to assure that the company is providing a ‘true and fair view’ of its financial situation at the time of the audit.
Auditors are entrusted with the task of assuring a company’s financial accounts and anything that prevents this or interferes with an
auditor’s objectivity is a failure of the auditor’s duty to shareholders.

Step 4: What are the alternative courses of action?

Option 1 is to accept the bribe and ignore the irregular cash payment. Option 2 is to refuse the bribe and take appropriate actions
accordingly.

Step 5: What is the best course of action that is consistent with the norms, principles, and
values identified in Step 3?
The course of action consistent with the norms, principles, and values in Step 3 is to refuse the bribe. The auditor would report the
initial irregular payment and then also probably report the client for offering the second bribe.

Step 6: What are the consequences of each possible course of action?

Under Option 1, the auditor would accept the bribe. He would enjoy the increase in wealth and presumably an increase in his
standard of living but he would expose himself to the risk of being in both professional and legal trouble if his acceptance of the
bribe was ever uncovered. He would have to ‘live with himself’ knowing that he had taken a bribe and would be in debt to the client,
knowing that the client could expose him at any time.
Under Option 2, the auditor would refuse the bribe. This would be likely to have a number of unfortunate consequences for the client
and possibly for the future of the client–auditor relationship. It would, however, maintain and enhance the reputation and social
standing of auditors, maintain public confidence in audit, and serve the best interests of the shareholders.

Step 7: What is the decision?

The ethical decision is Option 2. The auditor should refuse the bribe.
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Question 43

Topic: Tucker’s Five Question Model

Big Company is planning to build a new factory in a developing country. Analysis shows that the new factory investment will be more
profitable than alternatives because of the cheaper labour and land costs. The government of the developing country has helped the
company with its legal compliance, which is now fully complete, and the local population is anxiously waiting for the jobs which will,
in turn, bring much needed economic growth to the developing country. The factory is to be built on reclaimed ‘brownfield’ land and
will produce a lower unit rate of environmental emissions than a previous technology.

Required:
Evaluate the situation using Tucker’s Five Question Model
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Suggested Solution to Q43

Is it profitable?
Yes. The investment will enable the company to make a superior return than the alternatives. The case explains that these are
‘because of the cheaper labour and land costs’.

Is it legal?
Yes. The government of the developing country, presumably very keen to attract the investment, has helped the company with its
legal issues.

Is it fair?
As far as we can tell, yes. The only stakeholder mentioned in the scenario is the workforce of the developing country who, we are
told, is ‘anxiously waiting’ for the jobs. The scenario does not mention any stakeholders adversely affected by the investment.

Is it right?
Yes. The scenario explains that the factory will help the developing country with ‘much needed economic growth’, and no
counter-arguments are given.

Is it sustainable or environmentally sound?

Yes. The scenario specifically mentions an environmental advantage from the investment.
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Question 44 (Linked to Q43)

Topic: Tucker’s Five Question Model

Some more information has emerged about Big Company’s new factory in the developing country. The ‘brownfield’ land that the
factory is to be built on has been forcefully requisitioned from a community (the ‘Poor Community’) considered as ‘second class
citizens’ by the government of the developing country. The Poor Community occupied the land as a slum and now has nowhere to
live.
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Solution to Q44

Is it profitable?
Yes. The same arguments apply as before.

Is it legal?
It appears that the government of the developing country has no effective laws to prevent the forced displacement of the Poor
Community and may be complicit in the forced removal. While the investment may not be technically illegal, it appears that the legal
structures in the host country are not particularly robust and are capable of what amounts to the oppression of thePoor Community.

Is it fair?
While the issue of the much needed employment remains important, it must be borne in mind that the jobs are provided at the cost of
the Poor Community’s homes. This apparent unfairness to the Poor Community is a relevant factor in this question. The answer to ‘is
it fair?’ will depend on the decision maker’s views of the conflicting rights of the parties involved.

Is it right?
The new information invites the decision maker to make an ethical assessment of the rights of the Poor Community against the
economic benefits of the investment. Other information might be sought to help to make this assessment including, for example, the
legality of the Poor Community’s occupation of the site, and options for rehousing them once construction on the site has begun.

Is it sustainable or environmentally sound?

Yes. The same arguments apply as before.