Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT a feature of a Power culture?

1. A major source of influence

2. High number of formal controls

3. Presence of a founder's influence

4. Small size of the organization

The correct answer is: High number of formal controls

In a Power culture, decision-making is typically centralized around one or a few individuals who hold significant influence within the organization. This type of culture is marked by a concentration of power and authority, allowing those in dominant positions to have a major impact on organizational direction and decisions. A distinguishing characteristic of Power culture is the minimal reliance on formal control mechanisms. Instead, informal influence, relationships, and personal power dominate how things are managed. Therefore, the presence of high numbers of formal controls does not align with the nature of a Power culture. Such cultures prioritize direct influence and autonomy over structured regulatory processes. The other features mentioned, such as having a founder's influence or the small size of the organization, are commonly found aspects of Power cultures. Because they tend to be less bureaucratic and more reliant on individual leadership, features like a significant source of influence from a founder can further reinforce this culture type.