ICAEW BTF EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

ICAEW BTF EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Organisation - Answers A social arrangement for the controlled performance of collective goals, which has a boundary separating it from its environment Business - Answers An organisation oriented towards making a profit for its owners so as to maximise their wealth and that can be regarded as an entity separate from its owners When wealth maximisation is not the primary objective - Answers - Management has no personal interest - Market lacks competitive pressure - Managers choose profit satisficing - Business seeks to maximise revenue over profit (e.g. to increase market share, discourage competition) Elements of mission - Answers Reason (purpose) Strategy Policies and standards of behaviour Values RSVP SMART goals - Answers Specific Measurable Achievable Relevant Time-bound Sustainable development - Answers the aim of pursuing economic activity without causing permanent harm to society and the planet Natural capital - Answers stock of renewable and non-renewable natural resources that combine to yield a flow of benefits or 'services' to people. Ecosystem services - Answers Benefits to people from ecosystems e.g. timber and pollination, climate regulation and mental health benefits Abiotic service - Answers Benefits from geological processes, rather than ecosystem services e.g. supply of minerals, metal, oil etc and changing seasons Biodiversity - Answers Range of life forms found in one area that make up an ecosystem Enterprise value - Answers expectations over short to long term value of future cash flows, in the context of the entity's risk profile, access to finance and cost of capital. Sustainability-related financial disclosures are an input of this assessment Social value - Answers value for money in profit and financial terms, whilst generating long-term positive impacts on local communities, the environment and other parties Social sustainability - Answers Meeting the needs of a wider group of stakeholders and society as a whole rather than just the shareholders. Avoids exploiting groups or individuals, treats suppliers fairly and avoids bribery and corruption Environmental sustainability - Answers Avoiding any harm to the biodiversity of the planet. Often involves the considered use of natural capital Economic sustainability - Answers providing long term return to stakeholders whilst respecting social and environmental concerns triple bottom line - Answers people (social sustainability), planet (environmental sustainability), profit (economic sustainability) GHG Protocol Corporate Accounting and reporting Standard - Answers Scope 1: GHG emissions produced directly by organisation Scope 2: GHG emissions produced indirectly by organisation Scope 3: GHG emissions an organisation is indirectly responsible for, through its supply network (downstream) or its customers and treatment at the end of the product's life (upstream) sustainable development goals - Answers - no poverty - zero hunger - good health and well being - quality education - gender equality - clean water and sanitation - affordable and clean energy - decent work and economic growth - industry, innovation, and infrastructure - reduced inequalities - sustainable cities and communities - responsible consumption and production - climate action - life below water - life on land - peace, justice, strong institutions - partnerships for the goals Institute of Environmental Management and Assessment (IEMA) mitigation hierarchies - Answers 1. Compensate (those affected by harm) 2. Substitute (replace energy sources with low carbon equivalents) 3. Reduce (the amount of waste that is produced) 4. Eliminate (prevent impact from occurring in future) Power - Answers ability to get things done Coercive power - Answers Power of physical force or punishment Reward (or resource) power - Answers Based on access to or control over valued resources. For example, managers have access to information, contacts and financial rewards for team members. Legitimate (or position) power - Answers Associated with a particular position in the organisation. For example, a manager has the power to authorise certain expenses, or issue instructions, because the authority to do so has been formally delegated to her. Expert power - Answers Based on experience, qualifications or expertise. For example, accountants have expert power because of their knowledge of the tax system Referent (or personal) power - Answers Based on force of personality, or 'charisma', which can attract, influence or inspire other people. Negative power - Answers The power to disrupt operations e.g. by industrial action, refusal to communicate information or sabotage Authority - Answers the right to do something or to ask someone else to do it and expect it to be done Responsibility - Answers The obligation a person has to fulfil a task which he or she has been given Accountability - Answers liability to be called into account for the fulfilment of tasks they have been given by persons with a legitimate interest in the matter Delegation - Answers Giving a subordinate responsibility and authority to carry out a given task, while the manager retains overall responsibility Line manager - Answers Has authority over a subordinate Staff manager - Answers Has authority in giving specialist advice, even for another department where they have no line authority Functional manager - Answers Has functional authority whereby authority is present to control performance in another department Project manager - Answers Has authority over project team members. This is often temporary and employees will likely have line managers who also have authority over them Elements of the management process - Answers Planning, organising, controlling, leading informational role - Answers checking data received and passing it on to the relevant people acting as spokesperson for the team in relation to other teams or their own manager Interpersonal role - Answers acting as a leader for their own team linking with managers of other teams e.g. representing team at a conference with other managers decisional role - Answers 'do' what we perceive as managing: - allocate resources - handle disturbances - negotiate - solve problems - act as entrepreneur Quinn (1995) tensions affecting business culture - Answers flexiblity vs control inward looking vs outward looking Internal process culture - Answers inward looking, control - looks inwards - stable/controlled internal environment - goals are known and unchanging - defined methods, rules and procedures - employees motivated by security, stability and order e.g. public sector organisation Rational goal culture - Answers - goal orientated towards external requirements - structured and controlled to deal effectively with outside world - employees motivated by competition and achievement of goals e.g. large established businesses Open systems culture - Answers - External environment provides opportunity but is ever-changing and unpredictable - highly flexible business, open to new ideas, adaptable in structure - Growth, creativity and variety motivate staff e.g. new business unit working with fast-changing technology Human relations culture - Answers - inward-looking - maintains wellbeing of staff - sense of belonging motivates staff Rational goal model of management - Answers Business with rational goal culture uses the reason why a business does something to improve 3Es 1. systematic work methods 2. detailed division of labour 3. centralised planning and control 4. 'low involvement' employment relations such as contract works Internal process model of management - Answers Business with internal process model looks at how not why Rationality (most efficient means to meet objectives) Hierarchical lines of authority (closely defined areas of authority) Detailed rules and procedures (tight regulation & public scrutiny = more rules & procedures) Division of labour (tight limits on responsibility of staff) Impersonality (appraisals based on objective criteria) Centralisation Consumer markets - Answers markets for products and services bought by individuals for their own or family use FMCG - Answers Fast moving consumer goods: high volume, low unit value, fast repurchase Consumer durables - Answers low volume, high unit value Goods and services covered by industrial markets - Answers - Raw materials - Processed materials and components - Capital goods - Supplies - Services 4 Ps of marketing mix - Answers Applies to physical goods and services: Product Price Promotion Place