Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does accountability require of a business?

1. To be responsible for its decisions and actions

2. To focus on shareholder profits

3. To maintain confidentiality at all times

4. To improve employee satisfaction

The correct answer is: To be responsible for its decisions and actions

Accountability in a business context fundamentally requires the organization to be responsible for its decisions and actions. This obligation encompasses being answerable to stakeholders, including shareholders, employees, and customers, for the outcomes of its choices and the ethical considerations behind them. When a business holds itself accountable, it acknowledges its role in the decision-making process, accepts the consequences of its actions, and strives to maintain transparency with various stakeholders. This principle is vital because accountability builds trust and fosters a culture of responsibility within the organization. It encourages businesses to act ethically, engage in honest reporting, and take corrective actions when necessary, thus promoting better governance and stakeholder engagement. While other options like focusing on shareholder profits, maintaining confidentiality, or improving employee satisfaction are important aspects of a business, they do not encapsulate the broader requirement of accountability. Shareholder profits pertain specifically to financial performance. Maintaining confidentiality is critical for trust but does not directly relate to accountability. Improving employee satisfaction, while valuable, is more about organizational health than the overarching responsibility tied to accountability.