Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CIMA E1 > Section D > Flashcards

Section D Flashcards

1
Q

What does Mintzberg suggest?

A

Businesses can be split into six building blocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the three things inside the Mintzberg?

A

Strategic Apex
Middle Line
Operating Cor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the two things on the outside of the Mintzberg?

A

Technostructure

Support Staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is on the tip of the mintzberg?

A

Ideology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the operating core of the Mintzberg?

A

Basic work of organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the strategic apex of the Mintzberg?

A

Higher levels of management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the Middle line of the Mintzberg?

A

Links strategic apex and operating core

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the technostructure of the Mintzberg?

A

Designs procedures and standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the support staff of the Mintzberg?

A

Provides Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the ideology of the Mintzberg?

A

Organisations values and beliefs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the four types of business structures?

A

Entrepreneurial
Functional
Divisional
Matrix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the advantages of an entrepreneurial structure?

A

Fast Decision Making
Good Control
Responsive to market
Close bond to workforce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the disadvantages of an entrepreneurial structure?

A

Success dependant on owner
Lack of career structure
Cannot cope with growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How is a functional structure laid out and what are the features?

A

Directors with the four functions underneath.
Common to organisation who have outgrown entrepreneurial structure
Appropriate to smaller companies with few products and locations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the advantages of a functional structure?

A

Economies of scale
Standardisation of outputs and systems
Specialists more comfortable
Career Opportunities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the disadvantages of a functional structure?

A

Empire building and conflicts between functions
Slow to adapt to market
Cannot cope with rapid growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How is a divisional structure laid out?

A

Directors with divisions just below. Then functions for each division.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the advantages of a divisional structure?

A

Enables product or geographical growth
Clear Responsibility
Decision Making
Top managers free to concentrate on strategic matters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the disadvantages of a divisional structure?

A

Duplication of business functions
Lack of goal congruence
Specialists may feel isolated
Potential loss of control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is goal congruence?

A

consistency or agreement of individual goals with company goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is economies of scale?

A

proportionate saving in costs gained by an increased level of production.
Costs go down per unit with increased production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the matrix structure?

A

Combines divisional and functional structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the advantages of a matrix structure?

A

Flexibility

Encourages Teamwork

24
Q

What are the disadvantages of a matrix structure?

A

Dual Command
Lack of individual accountability
Time - Consuming meetings

25
Q

What is a centralised structure?

A

Upper levels of organisation retain authority

26
Q

What is a decentralised structure?

A

Authority is passed down to units and people at lower levels

27
Q

What is a scalar chain?

A

Line of authority than can be traced up or down chain of command. Relates to number of levels of management.

28
Q

What is a span of control?

A

Considers how many people report to one superior

29
Q

What are the four levels of the diamond shape from top to bottom?

A
  1. Senior Finance team
  2. Strategic business partnering
  3. Digital centres of excellence
  4. Smart Finance Functions
30
Q

In what order has the typical triangle changed?

A

Hierarchical, Segregated, Digital Age

31
Q

What are the three reasons why the triangle shape has changed?

A

Changing mandate for Finance
Technology
Finance Function Capability

32
Q

What is outsorcing?

A

Contracting out aspects of work of organisation

33
Q

What is a shared service centre?

A

Established for a particular activity of organisation
Company chooses to operate at one site
‘Internal Outsorcing’

34
Q

What is a service level agreement?

A

Agreement between supplier and customer and is a legal agreement regarding level of service provided

35
Q

What is a transaction cost?

A

Indirect cost incurred in performing a particular activity

36
Q

What are the benefits of outsourcing the finance function?

A

Cost Reduction
Radical Transformation
Access to superior capabilities, expertise and resources
Business Partnering

37
Q

What are the drawback of outsourcing the finance function?

A

Loss of Control
Causes disruption
Risk of intellectual property theft and data breeches
Erosion of external knowledge and control

38
Q

What are the benefits of having a finance shared service centre?

A

Cost Reduction
Opportunity to standardise processes
Improved level of service

39
Q

What are the drawback of having a finance shared service centre?

A

Employee Issues

Lack of system integration

40
Q

What does the finance factories include?

A 
Finance operations:
Financial Reporting
Treasury Management
Management Accounting
Internal Audit
41
Q

What is financial reporting?

A

produces finance information for external uses

May include financial statements, tax reporting and regulatory reporting

42
Q

What are three types of financial statements?

A

Profit & Loss
Financial Position
Cashflows

43
Q

Who do the finance factories provide statements for?

A 
Owners
Banks
Suppliers
Managers
Employers
Customers
Government
44
Q

What do management accountants do?

A

Provision of information to help managers and other internal users in decision making, performance, planning and control.
Reports includes cost schedules, budgets and variance reports.

45
Q

How can managements accountants helps a business and what are some examples?

A

Help business make decisions including pricing decisions, break-even analysis, key factor analysis, Investment analysis

46
Q

What is the acronym for budget and what does it stand for?

A 
CRUMPET
Co-ordination
Responsibility
Utilisation
Motivation
Planning
Evaluation
Telling
47
Q

What does treasury management do?

A

Management of business funds, namely cash, working capital, long and short term investments.

48
Q

What are two main types of external financing?

A

Debt: Borrowing cash from a third party
Equity: Selling a stake in the business

49
Q

What does internal audit do?

A

Independent activity, examine and evaluate organisations risk management processes and systems of control, make recommendations for achievement of company objectives

50
Q

Who is included in the digital centres of excellence?

A 
Specialist Areas: 
Financial Planning & Analysis
Taxation
Project Management
Project Appraisal
51
Q

What does taxation do:

A

Minimises Risk
Creating Value
Tax Compliance: Following current legislation, regulation and procedures.
Tax Planning: Focuses on esuring organisation is working in the most tax efficient way

52
Q

What does project management do?

A

Ensures the proper knowledge and resources are available when and where needed.
Ensures expected outcome is produced in timely, cost effective manner.

53
Q

What is project appraisal?

A

First stage of project management process.

Involves assessment and evaluation of many decisions and potential outcomes.

54
Q

What are some appraisal methods?

A

Payback
Net Present Value
Internal Rate of Return

55
Q

What does strategic partnering for value do?

A

Communicating insight to influence users

Business partnering

56
Q

What do strategic leadership of finance team do?

A

Leading key initiatives that support the organisations goals.
Executing and funding strategies set by the CEO
Liaising effectively with internal and external stakeholders.

57
Q

Which functions does the McKinsley report think will be automated by advancing technology?

A 
Data Collection 64%
Data Processing 69%
Applying Expertise 18%
Stakeholder Interactions 20%
Managing Others 9%

CIMA E1 (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions