Syllabus A: Nature, source and purpose of management information — ACCA Practice Question 01

How to approach this question

Identify the time horizon (5 years) and the nature of the decision (acquisition). These are hallmarks of strategic planning.

Full Answer

C.Strategic management; highly summarized, forward-looking, and external information.✓ Correct

Strategic management involves long-term planning (typically 3-5+ years) and setting the overall direction of the organization. Decisions like acquisitions require information that is forward-looking, often sourced externally (market trends, competitor analysis), and summarized rather than granular.

Common mistakes

Confusing tactical (medium-term) with strategic (long-term) management.

BioGenix Therapeutics is deciding whether to acquire a smaller biotech startup to expand its gene-editing portfolio over the next five years.

Which level of management is primarily responsible for this decision, and what type of information is required?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 1

More questions from this exam

BioGenix Therapeutics is deciding whether to acquire a smaller biotech startup to expand its gene-editing portfolio over the next five years. Which level of management is primarily responsible for this decision, and what type of information is required?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 1

More questions from this exam

BioGenix Therapeutics is deciding whether to acquire a smaller biotech startup to expand its gene-editing portfolio over the next five years.

Which level of management is primarily responsible for this decision, and what type of information is required?