Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following reflects an effective committee's function?

1. Division of departments

2. Encouraging internal competition

3. Co-ordination of combined abilities

4. Funding external projects

The correct answer is: Co-ordination of combined abilities

An effective committee's function is best reflected by the coordination of combined abilities. This approach emphasizes collaboration among members, bringing together diverse skills and perspectives to achieve common goals. By coordinating the strengths and contributions of its members, a committee can foster an environment conducive to effective decision-making and innovative problem-solving. This collective effort is essential for achieving objectives that benefit the organization as a whole. In contrast, dividing departments does not inherently promote teamwork or unified progress towards goals. Encouraging internal competition can lead to fragmentation and conflict rather than collaboration. Funding external projects, while potentially beneficial, does not directly relate to the core function of a committee, which should focus on leveraging internal resources and capabilities.