Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the ACCA Certification Exam with interactive quizzes and detailed explanations. Get a head start on your success with our comprehensive study tools.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In what type of organization are services akin to those provided by external service providers?

Flat organizations
Tall organizations
Shared service organizations
Boundaryless organizations

The correct answer is: Shared service organizations

Shared service organizations are structured to deliver services that are typically offered by external service providers but are instead provided internally within the organization. This model consolidates service functions, such as human resources, finance, and IT, into a single, centralized unit to promote efficiency and effectiveness. By having specialized teams handling these services, shared service organizations can streamline processes, reduce costs, and provide improved quality of service to various business units within the organization. For organizations that resemble external service providers, the focus is on the efficiency of service delivery, customer service, and process standardization—hallmarks of shared service models. This differs fundamentally from flat, tall, or boundaryless organizations, where the structure, hierarchy, or flexibility does not primarily emphasize the internal provision of specialized services in a manner akin to external service providers.