Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which category includes factors like control and strategy in business organizations?

1. Stakeholder influence

2. Business structure

3. Operational efficiency

4. Organizational characteristics

The correct answer is: Organizational characteristics

The category that includes factors like control and strategy in business organizations is indeed organizational characteristics. This is because organizational characteristics encompass the fundamental attributes and frameworks through which a business operates. Control refers to the mechanisms and systems in place to guide and manage the business's direction, operations, and compliance, all of which fall under the broader umbrella of organizational characteristics. Strategy is also a key component of these characteristics, as it outlines how an organization plans to achieve its goals and objectives. It involves decision-making processes, the allocation of resources, and adapting to external influences. Hence, control mechanisms and strategic planning are integral elements that define the overall nature and behavior of an organization, making this category the most appropriate choice for factors like control and strategy. The other categories, while relevant to business operations, do not directly encompass these specific elements. Stakeholder influence focuses on the impact various stakeholders have on a business's decisions and operations. Business structure relates more to the form and hierarchy of the organization, which may influence but does not specifically include control and strategy. Operational efficiency concerns the effectiveness and productivity of processes rather than the overarching strategies and controls guiding them.