Q1. Which TWO are advantages of decentralised decision-making? (Select TWO.) Correct

Multiple response
A) Local managers can respond faster to local conditions
B) Policies are applied consistently across all units
C) Head office controls costs more tightly
D) Managers gain motivation and training for senior roles
E) Bulk purchasing gives economies of scale

Your answer: A, D  |  Correct answer: A, D

Decentralisation speeds decisions and develops managers. Consistency, tight cost control and bulk purchasing are advantages of centralisation. If you chose B, C or E you picked benefits of central control.

Centralisation and decentralisation

Q2. Profit before tax is Tk 420 million after finance costs of Tk 40 million and a Tk 25 million gain on disposal of equipment. Depreciation is Tk 90 million, inventory rose by Tk 35 million, receivables fell by Tk 18 million and payables rose by Tk 22 million. What is cash generated from operations (indirect method, before interest and tax paid)? Incorrect

A) Tk 530 million
B) Tk 490 million
C) Tk 555 million
D) Tk 600 million

Your answer: C  |  Correct answer: A

420 + 40 (add back finance costs) + 90 (depreciation) - 25 (non-cash gain, shown in investing) - 35 (inventory increase) + 18 + 22 = 530. If you chose 555 you did not remove the disposal gain. If you chose 490 you did not add back finance costs. If you chose 600 you added the inventory increase instead of deducting it.

Statement of cash flows

Q3. Under the Bangladesh Corporate Governance Code at least one-fifth of the directors must be independent, and any fraction is rounded up. A listed company has 11 directors. What is the minimum number of independent directors? Incorrect

A) 2
B) 1
C) 4
D) 3

Your answer: A  |  Correct answer: D

11 / 5 = 2.2, and the Code treats a fraction as the next whole number, so at least 3. If you chose 2 you rounded down. If you chose 4 you rounded up twice. If you chose 1 you used the audit committee minimum of one independent member.

Independent directors

Q4. Profit after tax is Tk 90 million, preference dividends are Tk 6 million, there are 60 million ordinary shares and the share price is Tk 21. What is the price/earnings ratio? Correct

A) 6.7
B) 14.0
C) 15.0
D) 29.4

Your answer: C  |  Correct answer: C

Earnings for ordinary shareholders = 90 - 6 = 84, so EPS = 84 / 60 = Tk 1.40, and P/E = 21 / 1.40 = 15.0. If you chose 14.0 you ignored the preference dividend (EPS 1.50). If you chose 6.7 you calculated the earnings yield as a percentage (1.40 / 21). If you chose 29.4 you multiplied price by EPS.

Price/earnings ratio

Q5. A product has a 12% market share. The largest competitor holds 30%, and the market is growing at 14% a year. Where does the product sit on the BCG matrix? Incorrect

A) Dog (divest or harvest)
B) Cash cow (harvest for cash)
C) Star (invest to hold share)
D) Question mark (build or divest)

Your answer: C  |  Correct answer: D

Relative market share = 12% / 30% = 0.4, which is low (below 1.0), and market growth of 14% is high. Low share in a high-growth market is a question mark. A star has high share and high growth. A cash cow has high share and low growth. A dog has low share and low growth. If you chose star you used absolute share; if you chose dog you ignored growth.

BCG matrix

Q6. A company earns a return on capital employed of 15%, and revenue is 2.5 times capital employed. What is its operating profit margin? Incorrect

A) 17.5%
B) 6.0%
C) 37.5%
D) 16.7%

Your answer: A  |  Correct answer: B

ROCE = operating margin x asset turnover, so margin = 15% / 2.5 = 6.0%. If you chose 37.5% you multiplied 15% by 2.5. If you chose 17.5% you added the two figures. If you chose 16.7% you divided turnover by ROCE.

DuPont analysis

Q7. Which TWO are appropriate early steps for an accountant facing an ethical conflict? (Select TWO.) Incorrect

Multiple response
A) Establish the relevant facts and identify the fundamental principles at risk
B) Report the matter immediately to the police
C) Consult the employer's ethics policy and internal procedures
D) Ignore the matter if the amount is small
E) Publish the issue on social media

Your answer: B, C, D  |  Correct answer: A, C

A structured approach starts with the facts, principles and parties, then the employer's procedures and, if needed, advice from the professional body or a lawyer. Immediate reporting externally, ignoring small matters and publicising the issue skip the process. If you chose B, D or E you chose a step that is premature or inappropriate.

Ethical conflict resolution

Q8. A community group living near a Gazipur dyeing plant has strong interest in the plant's expansion but little formal power. It then persuades the environmental regulator, which has high power and shares its concern, to review the expansion. Using Mendelow's power/interest grid, what is the most likely effect and the plant owner's best response? Incorrect

A) The group's effective influence rises towards 'key player' status, so the owner should engage it actively and manage the regulator relationship
B) The group moves to 'keep satisfied' because the regulator's power replaces its interest, so the owner can ignore its concerns
C) The group moves to 'minimal effort' because regulators decide the outcome, so the owner should deal only with the regulator
D) The group stays in 'keep informed' because its own formal power is unchanged, so periodic newsletters remain sufficient

Your answer: B  |  Correct answer: A

Mendelow's grid classifies stakeholders by power and interest. A high-interest, low-power group is 'keep informed', but power can be borrowed through coalitions: the regulator's backing gives the group real influence over the expansion decision. The sensible response is active engagement with both the group and the regulator. If you kept the group in 'keep informed' you ignored the coalition. If you chose 'keep satisfied' you confused interest with power. If you chose 'minimal effort' you dropped a stakeholder whose interest is high and whose influence has just increased.

Stakeholder mapping

Q9. Consider budgeting methods. For each statement, select Yes if it is correct and No if it is not. Incorrect

(1) No: that describes zero-based budgeting. (2) No: participation can even allow managers to build slack in. (3) Yes: flexing gives a like-for-like comparison.

Budgeting

Q10. Consider market behaviour. For each statement, select Yes if it is correct and No if it is not. Incorrect

(1) No: cheaper substitutes reduce demand for the good. (2) Yes. (3) No: a ceiling above equilibrium is not binding; only a ceiling below equilibrium creates a shortage. (4) Yes.

Supply, demand and elasticity