Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is the composition of management committees in a business context?

Only composed of board members
Includes executives from various levels
Comprised solely of junior staff
Consists of external consultants

The correct answer is: Includes executives from various levels

Management committees are typically composed of executives from various levels within an organization. This structure allows for a diverse range of perspectives and expertise, facilitating comprehensive decision-making and strategic planning. By including individuals from different functional areas and hierarchical levels, management committees can better address complex business issues, integrate varying viewpoints, and ensure that decisions consider both high-level strategic insights and practical day-to-day operations. The participation of executives from various levels fosters collaboration and can enhance the committee's ability to implement effective changes across the organization. Junior staff or external consultants might not have the same level of responsibility or insight into strategic decisions, so their inclusion would not represent the typical composition of a management committee. Therefore, the correct answer reflects the inclusivity and collaborative nature of management committees within businesses.