ACCA Strategic Business Leader (SBL) Practice Exam

What characterizes a unitary structure in governance?

1. A single board of directors managing everything

2. Two separate boards for supervisory and operational tasks

3. A committee system for decision making

4. Autonomy among departments without central oversight

The correct answer is: A single board of directors managing everything

A unitary structure in governance is characterized by a single board of directors that has comprehensive authority and responsibility for the management of the organization. This structure allows for streamlined decision-making, as all governance and operational responsibilities are centralized within one board. In this model, the board is tasked with both strategic oversight and day-to-day management, ensuring a cohesive vision and direction for the enterprise. This unified approach facilitates easier communication and quicker responses to challenges, as all the necessary decision-makers are contained within one governing body. The other options present different governance structures. Having two separate boards implies a dual board system, which is indicative of a dualistic governance model, rather than the singular focus of a unitary structure. A committee system suggests a delegation of decision-making authority to specialized groups, which can lead to complexities and fragmentation in governance. Finally, autonomy among departments without central oversight leans towards a decentralized governance strategy, contrasting with the centralized approach of a unitary structure.