ExpertEasy2 marksMultiple Choice
Syllabus A: Nature, source and purpose of management informationNature of InformationStrategic Planning
ACCA · Question 01 · Syllabus A: Nature, source and purpose of management information
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?
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?
Answer options:
A.
Operational management; detailed, historical, and internal information.
B.
Tactical management; moderately detailed, short-term, and internal information.
C.
Strategic management; highly summarized, forward-looking, and external information.
D.
Strategic management; highly detailed, historical, and internal information.
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.
Practice the full ACCA MA — Management Accounting Practice Exam 1
38 questions · hints · full answers · grading
More questions from this exam
Q02AeroSpace Imaging Inc. processes terabytes of satellite imagery daily to provide real-time agricu...MediumQ03A non-governmental organization (NGO) providing clean water solutions incurs the following costs ...EasyQ04The IT support department of a global fintech company provides internal services to other departm...EasyQ05Which of the following is NOT a characteristic of good management information, according to the A...EasyQ06An agricultural research firm is testing a new drought-resistant crop. They divide the country in...Medium