Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is a common feature of business organizations?

1. Limited management oversight

2. Pooling of assets

3. Focus solely on profit

4. Single ownership without employee involvement

The correct answer is: Pooling of assets

Pooling of assets is indeed a common feature of business organizations. This concept refers to the collective resources that are brought together from various owners or shareholders to support the operations and growth of the business. This pooling allows for greater financial strength, enabling the organization to invest in larger projects, expand its operations, and manage risks more effectively. By combining resources, businesses can achieve economies of scale, which can enhance competitiveness and profitability. In contrast, the other choices do not universally apply to all business organizations. Limited management oversight can occur in certain organizations but is not a defining feature; many businesses implement robust management structures. A singular focus on profit does not encompass the full spectrum of organizational objectives, as many businesses aim for social responsibility and sustainability alongside profitability. Lastly, single ownership without employee involvement is not characteristic of most business organizations, which often rely on a diverse team to contribute to various aspects of their operations and decision-making processes.