Lesson 5.14.1

5.14.1 The finance strategy Quiz: OCR Business, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 5.14.1, The finance strategy: 20 multiple choice questions for the OCR Business (H431), Unit 5: Accounting and finance, written with Revision Ninja.

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The 20 questions

  1. What is the primary focus of a long-term financial strategy for a business?

    • Achieving corporate objectives
    • Minimising marketing budgets
    • Maximising line relationships
    • Eliminating span control

  2. Which organisational structure groups employees based on specialist skills and tasks?

    • Functional structure
    • Product structure
    • Matrix structure
    • Divisional structure

  3. Which term describes the number of subordinates directly reporting to a manager?

    • Delegation of authority
    • Level of hierarchy
    • Span of control
    • Chain of command

  4. What is the main outcome of delayering within an organisational hierarchy?

    • Narrower control span
    • Increased centralisation
    • Shortened command chain
    • Higher overhead costs

  5. Which organisational structure combines functional departments with specific project teams?

    • Flat structure
    • Divisional structure
    • Matrix structure
    • Hierarchical structure

  6. What is a key objective of human resource management regarding workforce planning?

    • Redundant authority lines
    • Increased unit costs
    • High staff retention
    • High labour turnover

  7. Which term refers to passing authority down the organisational hierarchy to subordinates?

    • Centralisation
    • Delegation
    • Decentralisation
    • Delayering

  8. What type of relationship exists between a specialist advisor and operational managers?

    • Matrix relationship
    • Hierarchical relationship
    • Line relationship
    • Staff relationship

  9. In a highly centralised organisation, where is strategic decision-making power located?

    • Senior management level
    • Regional supervisor level
    • Matrix team level
    • Operational staff level

  10. Which type of organisational structure features many levels of management and narrow spans?

    • Matrix structure
    • Flat structure
    • Delayered structure
    • Tall structure

  11. What is a major financial risk of relying heavily on debt financing in a strategy?

    • Loss of control
    • Dilution of ownership
    • High interest burden
    • Lower dividend demands

  12. Which human resource objective focuses on maximising the output per employee hour?

    • Low labour retention
    • High capacity utilisation
    • High staff turnover
    • High labour productivity

  13. What term describes shared values, beliefs, and norms within an organisation?

    • Chain of command
    • Organisational structure
    • Organisational culture
    • Span of control

  14. How does a flat organisational structure typically affect internal communication speed?

    • Prevents formal communication
    • Distorts communication flow
    • Slows communication flow
    • Accelerates communication flow

  15. A firm delegates decision-making to regional branch managers. Which strategy is this?

    • Rationalisation
    • Centralisation
    • Delayering
    • Decentralisation

  16. Which stakeholder group is primarily concerned with a business maintaining strong liquidity?

    • Environmental agencies
    • Local community
    • Customer groups
    • Trade creditors

  17. Why might a business set an explicit HR objective for workforce diversity?

    • Reduce employee engagement
    • Enhance corporate reputation
    • Lengthen command chains
    • Increase labour costs

  18. Which organisational model divides operations by distinct geographical regions or markets?

    • Functional structure
    • Flat structure
    • Matrix structure
    • Divisional structure

  19. What is a primary financial benefit of issuing equity rather than taking loans?

    • Guaranteed high dividends
    • No interest payments
    • Immediate tax relief
    • No ownership dilution

  20. How can aligned HR objectives support a business strategy of cost leadership?

    • Expanding management layers
    • Reducing employee turnover
    • Maximising recruitment budget
    • Increasing wage drift

All OCR Business quizzes