Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is the primary role of the top executive in a division?

To manage all direct reports within the division
To report directly to the chief executive of the holding company
To oversee daily operational tasks
To maintain the organizational structure

The correct answer is: To report directly to the chief executive of the holding company

The primary role of the top executive in a division is to report directly to the chief executive of the holding company. This reporting relationship is crucial because it ensures that the division aligns with the overall strategic direction set by the central leadership of the organization. The top executive acts as a liaison between the division and the holding company, communicating performance, challenges, and strategic initiatives. This connection is vital for ensuring that the division receives the necessary resources and support to achieve its goals while also adhering to broader corporate objectives. While managing direct reports, overseeing daily operations, and maintaining the organizational structure are also aspects of an executive's responsibilities, these tasks often fall under the broader management functions carried out by middle management within the division. The top executive's primary focus, however, centers on strategic alignment and communication with the holding company's chief executive.