Business Environment · May 2026

SECTION B- OPEN-ENDED QUESTIONS

a) Business environment A business environment refers to the totality of internal and external forces, factors, institutions and conditions that influence the operations, performance and decision-making activities of a business organisation. It comprises all circumstances within and outside the organisation that affect its ability to achieve its objectives.

b) The following are the characteristics of a business environment:

i. Complexity: The business environment is a complex system of many interacting elements, including internal factors (like employees and resources) and external factors (like customers, marketsand competitors). Changes in one area can have ripple effects on other areas, making it difficult to predict outcomes.

ii. Dynamism: The business environment is constantly changing, influenced by both internal and external factors. Businesses must adapt to these changes to remain competitive and successful.

iii. Multifaceted nature: The business environment is made up of various factors, including economic, social, political, technological, legal and environmental dimensions. Understanding these different dimensions is crucial for businesses to make informed decisions.

iv. Uncertainty: Uncertainty is an inherent characteristic of the business environment, as businesses cannot always predict future events or outcomes. Companies must be prepared to handle unexpected challenges and opportunities.

v. Interrelatedness: The different components of the business environment are interconnected and influence each other. Changes in one area can have a ripple effect on other areas.

vi. Relativity: The business environment is relative, meaning it varies from one location to another and from one industry to another. Businesses must tailor their strategies to the specific environment in which they operate.

vii. Far-reaching impact: The business environment has a significant impact on the survival and growth of businesses. Understanding and adapting to the business environment is crucial for long-term success.

viii. Importance of identifying opportunities and first mover advantage: The business environment presents both challenges and opportunities for businesses. Identifying opportunities and capitalising on them first can provide a significant competitive advantage.

c) Types of stakeholders Stakeholders can be internal or external to an organisation.

i. Internal stakeholders are people whose interest in a company comes through a direct relationship, such as employment, ownership or investment. Internal stakeholders are within the organisation. The project directly impacts them as they serve and are employed by the organisation managing it. Internal stakeholders can include employees, owners, the board of directors, project managers, investors and more.

ii. External stakeholders do not directly work for or with a company but are affected by the actions and outcomes of the business. suppliers, creditors and public interest groups are all considered external stakeholders. External stakeholders are outside of the organisation and are indirectly impacted by the project. The organisation’s work influences them, but they are not employees of the organisation. (d). Importance of stakeholders to business:

i. Providing resources:

• Financial support: Investors, for example, provide the capital needed for operations and growth.

• Labour and expertise: Employees contribute their skills and knowledge, which are essential for daily operations.

• Revenue and market access: Customers, suppliers and partners provide revenue and influence market access.

ii. Influencing decision-making:

• Strategic planning: Stakeholder engagement allows businesses to understand diverse perspectives, leading to more informed decisions.

• Risk management: Stakeholders can help identify potential risks and opportunities before they become significant issues.

• Innovation and creativity: Diverse stakeholder input can spark new ideas and improve business operations.

iii. Building relationships and trust:

• Improved communication: Engaging stakeholders fosters open dialogue and understanding, leading to better relationships.

• Enhanced reputation: strong stakeholder relationships build trust and confidence, enhancing the company's reputation.

• Greater alignment: Engaged stakeholders are more likely to support the company's goals and initiatives.

iv. Enhancing business performance:

• Increased efficiency: Understanding stakeholder needs allows businesses to streamline operations and improve resource allocation.

• Better project outcomes: Stakeholder engagement ensures that projects align with overall business goals and are more likely to succeed.

• Long-term sustainability: Addressing stakeholder concerns helps businesses achieve sustainable growth and avoid potential conflicts.

Examiner’s report The question is presented in four parts. The first part of the question requires a comprehensive definition of business environment. The second part demands listing and explanation of five characteristics of business environment, the third part requests for identification and description of the two types of stakeholders within an organisation, while the fourth part calls for identification and description of three aspects of stakeholders that are vital to an organisation. It was observed that 85% of the candidates attempted this question, and 65% of the number scored above average The common pitfalls of the candidates were their failure to discuss the characteristics of business environment as contained in the Study Text. Some candidates were also using stakeholders and shareholders interchangeably, while they are not the same. Candidates are encouraged to familiarise themselves with the ICAN study text and Pathfinder for better performance.

Marking guide Marks Marks (a) Correct definition of business environment 2½ (b) Identifying five characteristics 2½ Explaining the five characteristics 5 7½ (C) Identification of two types of stakeholders 2 Correct description of each type of stakeholder 2 4 (d) Identifying each important aspect of stakeholders 3 Correct description of stakeholders identified 3 6 Total 20

(a) The determinants of a centralised organisational structure There are various factors to consider, including:

i. Cost: Centralisation saves costs. For example, it supports higher economies of scale. For instance, when departmental managers have the authority to procure office equipment, they may not be eligible for discount facilities. However, if done centrally, the company can buy on a large scale from suppliers. As a result, suppliers are more likely to offer a discount to the company. Finally, procurement costs become more cost- effective when carried out centrally, rather than independently by each department. And companies benefit from purchasing economies of scale;

ii. Organisation size: In some cases, large companies tend to delegate decisions to lower-level management. It is almost impossible to make all the decisions under a few people because the operation is more complex. Take, for example, multinational companies. Top-level management at headquarters delegates decisions and grants autonomy to strategic business unit management. The same case applies to other companies, such as retail chains;

iii. Management style: Centralised structures are common under authoritarian leadership. The leader dominates decisions, leaving little room for subordinates to participate. Moreover, authoritarian leaders demand absolute obedience to their decisions;

iv. Quality managers at every level: Centralisation can be a suitable choice when managers at each level have varying qualities. For example, top- level managers are trained to make decisions. In contrast, lower-level managers do not have such attributes. Thus, bad decision-making can be avoided by concentrating decisions at the top level;

v. Geographical spread: A centralised organisational structure is an option when a company operates in multiple locations. Conversely, they will rely on decentralisation if they operate in many different geographic areas, such as multinational companies; and

vi. Business environment: In a centralised structure, if decisions have to be made by top-level managers, it can take a long time. It can become even more acute when a problem arises because a decision does not come immediately.

(b) Characteristics of a decentralised organisational structure The key features that set the decentralised organisational structure apart from traditional models are as follows:

i. Distribution of authority and decision-making: Instead of waiting for approvals from the top, managers and employees at different levels have the power to make decisions based on their roles. This speeds up decision-making and processes, as those closest to the issues and possessing the most relevant information make the call;

ii. Empowerment of lower-level employees: a decentralised organisational structure empowers employees at lower levels by giving them the authority to make decisions, and employees feel more valued and motivated. This can lead to higher job satisfaction, better performance and a stronger sense of ownership over their work;

iii. Flexibility and adaptability: Decentralised organisations are flexible and able to adapt quickly to changes. Because decision-making is decentralised, these companies can respond more rapidly to market shifts, customer needs and new opportunities, which are crucial in fast- paced industries;

iv. Communication channels and information flow: In a decentralised structure, the flow of information is more open and multi-directional. Information is transmitted not just from the top down but also laterally and from the bottom up. This fosters a more collaborative environment where ideas and feedbacks are freely shared, leading to improved problem-solving and innovation.

(c) Advantages of centralised and decentralised organisational structures Advantages of centralised organisational structure:

i. Consistent decision-making: Since decisions are made by top-level managers and cascaded downward, there is consistency across all levels of the organisation, minimising the risk of conflicting or contradictory choices by subordinates;

ii. Easy to make decisions: Top-level managers make decisions at their discretion without the need to extensively consult with multiple parties, making the decision process more direct and less time consuming at the strategic level;

iii. Clear chain of command: The authority structure is well-defined. Everyone within the organisation knows who has the right to make decisions, reducing confusion and overlapping responsibilities, particularly when problems arise;

iv. Maintained quality control: Top management enforces standards and procedures that govern the actions of subordinates. This standardised approach ensures that outputs consistently meet required specifications, with limited room for independent deviation;

v. Unity towards organisational goals: Centralised decision-making ensures that all parts of the organisation move in the same direction. Once a decision is reached, lower-level staff implement it without the option to deviate, keeping the company aligned with its vision and strategic objectives;

vi. Order in business: Top-level managers require employees to comply with every decision made, resulting in a more orderly and smoother running of the organisation's operations, with reduced conflict over procedures and priorities;

vii. Saving money: Centralisation minimises problems arising from inconsistent decisions and duplication of roles. It also supports economies of scale, for example, centralised procurement allows the organisation to benefit from bulk purchasing discounts, reducing overall expenditure;

viii. Good business image: With communications and public-facing decisions coordinated at the centre, the organisation maintains a consistent image in the eyes of the public. This is especially critical during a crisis, when a unified, coordinated response is essential. Advantages of decentralised organisational structure:

i. Faster decision-making: Unlike centralised organisations where decisions pass through multiple layers, decentralised organisations allow lower- level managers, and sometimes regular employees, to make and implement decisions directly without waiting for top management approval.

ii. Top management focus on long-term goals: By delegating day-to-day operational decisions, senior executives are freed to concentrate on long- term strategic planning, mission setting and growth strategy development for the organisation.

iii. Increased employee empowerment and engagement: Giving employees decision-making authority makes them feel valued and important within the organisation. This sense of ownership increases employee engagement, reduces turnover and leads to improved individual and team performance.

iv. Identification of future leaders: Delegating decision-making responsibility to lower-level managers and staff serves as a practical mechanism for identifying individuals with the potential to rise to higher positions within the organisation in the future.

Examiner’s report The question is presented in three parts. The first part requires the listing and explanation of four factors that influence a centralised organisational structure. The second part requires the candidates to state and explain four characteristics of a decentralised system of organisational structure. The last part requires four advantages of each of the centralised and decentralised organisational structures to be highlighted. It was observed that 55% of the candidate attempted this question and 48% of the number scored above average The common pitfalls of the candidates were their inability to state and explain correctly the determinants of a centralised organisation structure. For improved performance in future examinations, candidates are strongly advised to use ICAN study text and pathfinder for better preparation.

Marking guide Marks Marks

(a) Four correctly listed factor that influence a centralised organisation 2 Four correctly explained factors 4 6

(b) Four correctly listed factors that affect a centralisation organisation 2 Four correctly explained factors 4 6

(c) Highlighting four advantages of centralised organisational structure 4 Highlighting four advantages decentralised organisation structure 4 8 Total 20

a) Internal audit An internal audit is an independent review of an organisation's operations, governance, internal controls and risk management processes, aimed at improving the organisation's effectiveness and efficiency. It helps identify weaknesses and inefficiencies, ultimately enabling the company to achieve its goals by adopting a disciplined approach to evaluating and improving processes. An internal audit is an unbiased review of a company's internal systems, methods and procedures. The goal of an internal audit is to provide independent assurance over a company's operations. Types of Internal audits There are several types of internal audits:

i. Compliance audit: This is a review of a company's operations and procedures to make sure that internal rules, procedures and policies are being adhered to.

ii. Financial audit: Several audits fall under internal financial audits, such as payroll audits, which are used to ensure that employees are paid correctly.

iii. Environmental audit: These audits assess the environmental performance or the impact that a business's activities have on the environment.

iv. Technology or IT audit: These audits assess an organisation's information technology infrastructure for vulnerabilities and best practices.

v. Operational audit: An operational audit assesses an organisation's processes and procedures to identify opportunities for improving operations.

vi. Performance audit: This type of audit assesses whether a business meets performance metrics set by management.

b) Objectives of internal audit The formal objectives of internal audit may include some or all of the following review of:

• Accounting and internal control systems;

• Financial and operating information;

• The ’three E’s (economy, efficiency and effectiveness);

• Compliance with laws and regulations;

• Arrangements for the safeguarding of assets;

• Implementation of corporate goals and objectives;

• Identification of significant risks to the organisation and monitoring risk; and management policy and risk management strategies.

c) Key roles of internal audit

i. Improving operations Internal audits evaluate the effectiveness of the organisation's risk management processes, internal controls and governance structures, providing recommendations that drive operational improvement and enhance overall efficiency.

ii. Identifying weaknesses By systematically examining the organisation's processes and controls, internal audits pinpoint specific areas of vulnerability where improvements are needed, before such weaknesses escalate into material losses or failures.

iii. Ensuring compliance Internal audits help ensure that the organisation adheres to all relevant laws, regulations, and internal policies, thereby reducing the risk of regulatory breaches, legal penalties and reputational damage.

iv. Protecting assets Through a review of financial and operational activities, internal audits help safeguard the organisation's assets, both tangible and intangible, against misuse, theft, waste and other forms of loss.

v. Enhancing decision-making Internal audits provide management with valuable, independent insights and data that can be used to make better-informed strategic decisions, improve performance monitoring and achieve organisational goals more effectively.

Examiner’s report The question is in three parts. All parts of the question examine candidates’ knowledge on internal audit. It was observed that 65% of the candidate attempted this question and 55% of the number scored above average. The common pitfalls of the candidates were their lack of understanding of the objectives and roles of internal audit. Candidates should utilise Pathfinders' suggested solutions and the ICAN Study Text in preparing for future examinations.

Marking guide Marks Marks

(a) Stating types of internal audit Correctly explaining the types of internal audit 2½ 5 7½

(b) Highlighting five objectives of internal audit 5

(c) Stating five key roles of internal audit Correctly explaining the key roles of internal audit 2½ 5 7½ Total 20

(a) Managerial roles Managerial roles refer to the specific behaviours and activities adopted by managers to perform various management functions, including planning, organising, leading, strategising, and problem-solving. Within an organisation, managers at different levels hold different but often overlapping responsibilities. Henry Mintzberg classified managerial roles based on their purposes, identifying ten distinct roles grouped into three broad categories.

(b) Three categories of managerial roles

i. Interpersonal roles ii. Informational roles. iii. Decisional roles

(c) Ten managerial roles within the three categories Interpersonal roles: i. Figurehead ii. Leader iii. Liaison Informational roles: i. Monitor ii. Disseminator iii. Spokesperson Decisional roles: i. Entrepreneur ii. Disturbance handle iii. Resource allocator iv. Negotiator

(d) Five levels of Abraham Maslow's Hierarchy of Needs

i. Physiological needs ii. Safety/Security needs iii. Social needs iv. Esteem needs (Ego needs) v. Self-fulfilment needs (Self-actualisation)

Examiner’s report The question is in four parts. Three parts of the question examine candidates’ knowledge of managerial roles. Thus, the last part requires the candidate to state the different levels of Abraham Maslow’s Hierarchy of needs. It was observed that 90% of the candidate attempted this question and 65% of the number scored above average. The common pitfalls of the candidates were their lack of clear understanding of the three categories of the managerial roles. For better performance in future examinations, candidates should cover the contents of the syllabus and make adequate use of the ICAN study text.

Marking guide Marks

(a) Explaining managerial roles 2

(b) Correctly identifying categories of managerial roles 3

(c) Correctly stating ten managerial roles 10

(d) Correctly stating different levels of Abraham Maslow’s hierarchy of needs 5 Total 20

a) Law of demand The law of demand states that, all other things being equal (ceteris paribus), when the price of a good or service rises, the quantity demanded falls; and conversely, when the price falls, the quantity demanded rises. In other words, price and quantity demanded have an inverse relationship.

b) Determinants of demand The factors that influence the amounts of a good or service that are wanted are referred to as the determinants of demand in economics. These factors include, in addition to the price of the commodity itself, consumer income, the cost of associated goods and services, customer expectations and tastes, population, marketing methods, weather, credit availability, borrowing costs and other relevant factors.

• Consumer income The demand for a good or service may shift in response to changes in consumer income. However, the kind of commodity in question will determine which way demand changes.

• Normal goods: Ceteris paribus, demand for a typical good may rise in response to increasing consumer income and fall in response to falling consumer income. An increase in consumer income may result in a decline in demand for an inferior good. Thus, inferior goods such as "second-hand" goods are those that we purchase more of when we are financially worse off and less of when it is better off.

• For a necessity, a change in consumer income may not affect demand.

• Price of related goods Goods relate to each other in two ways. Goods are either complements or substitutes. ▪ Complementary goods are goods with joint demand. For example, a camera and film, a pen and ink, etc., are necessary together before a need can be met. When two complementary goods are priced together, a decrease in the demand for one will result in a rise in the demand for the other and vice versa.

• Substitute goods: Products that fulfil the same need or desire of the customer are known as substitutes (e.g. pen and biro). Examples of substitute items include butter and margarine; if the price of butter stays the same, a significant increase in the cost of margarine will enable individuals to eat more butter. When it comes to substitutions, if the price of one drops, the demand for the other fallsand if the price of one rises, the demand for the other rises, ceteris paribus.

• Consumer taste/preference Demand is impacted by advertising, fashion, and sales promotions. Any shift in consumer taste or preference results in a change in demand; for example, a rise in demand for a particular good is caused by an increase in taste or preference, while a fall in demand is caused by a decline in taste or preference.

• Consumer expectations The anticipated future price of the commodity and the expected shift in consumer income influence the decision to purchase it today. Today's demand for a commodity will rise if consumers expect its price to increase in the future, but today's demand will decrease if consumers expect its price to fall. Similarly, the current demand for a typical commodity may rise in response to an anticipated increase in consumer income, and vice versa.

• Population of consumers Population and population changes may affect demand for a commodity. Certain goods may be more in demand in densely populated areas than in less populated ones. For instance, because Nigeria has a larger population than Ghana, it can have a greater demand for some commodities and services. Additionally, a nation's demand for goods and services will rise in tandem with its population. Additionally, if the makeup or structure of the population changes, the demand for particular commodities and services may also alter.

• Marketing strategies Marketing techniques, such as publicity, advertising and sales promotions (like raffles), are ways to encourage customers to purchase more goods. They are designed to educate and persuade both new and existing customers to buy more of the product. All other things being equal, a successful marketing strategy will raise demand for the product.

• Natural factors Seasonal fluctuations can impact the demand for a commodity at specific times of the year. For instance, the demand for items such as fans and air conditioners typically rises during the dry season, while the demand for jackets, raincoats and umbrellas increases during the rainy season.

• Availability of credit Customers are encouraged to purchase more things when they are provided with credit facilities, such as hire purchase, credit purchase and the usage of credit cards and cheques. If all else is equal, granting credit facilities will raise demand for the products they cover.

• Cost of borrowing (Interest rate) People can borrow and purchase more common products and services if borrowing costs are low (interest rates are lower). People will borrow less money and make fewer investments if borrowing costs are high.

c) Movement along the demand curve vs. shift of the demand curve Movement along the demand curve: A movement along the demand curve occurs when the quantity demanded of a good changes as a result of a change in its own price, while all other factors remain constant (ceteris paribus). The demand curve itself does not change position. Price O Quantity From the above diagram, when price increases from OP to OP2, quantity demanded contracts from OQ to OQ2, a leftward movement along the curve from point A to point C. When price decreases from OP to OP1, quantity demanded extends from OQ to OQ1, a rightward movement along the curve from point A to point B. Shift of the demand curve: A shift of the demand curve occurs when any factor other than the price of the good itself causes a change in demand. This results in the entire demand curve moving to a new position, either to the right (demand increase) or to the left (demand decrease). O From the above diagram, when demand determinants improve (for example, an increase in consumer income for a normal good or a rise in the price of a substitute), the demand curve shifts rightward from DD to D1D1, indicating more is demanded at every price level. When determinants deteriorate, the curve shifts leftward from DD to D2D2.

Examiner’s report The question is in three parts. All parts of the question examine candidates’ knowledge of the concept of demand. It was observed that 60% of the candidate attempted this question and 42% of the number scored above average. The common pitfalls of the candidates were their inability to discuss and demonstrate a good knowledge of law of demand. Candidates are encouraged to prepare for future examinations by covering all aspects of the syllabus using the ICAN study text.

Marking guide Marks Marks (a) Correctly stating the law of demand 2½ (b) Correctly listing the determinants of demand Explaining the determinants of demand 2½ 5 7½ (c) Correctly labelling the diagram of demand curve 2 Correctly explaining movement in price along the demand curve 3 Correctly labelling shift in the demand curve 2 Correctly explaining shift in the demand curve 3 10 Total 20\`

a) Artificial Intelligence (AI) Artificial Intelligence (AI) refers to the development of machines that can perform tasks that typically require human intelligence. AI involves computer systems that can perform tasks traditionally requiring human intelligence, such as learning, reasoning, problem-solving and decision-making. AI applications in business include chatbots for customer service, predictive analytics, fraud detection and robotic process automation. Russell and Norvig (2016) define AI as "the study of agents that receive precepts from the environment and perform actions." AI technologies, including machine learning, natural language processing, robotics and deep learning, are becoming increasingly integral across various sectors, such as healthcare, finance, entertainment, and education. In accounting, AI is increasingly used for audit automation, risk assessment and financial forecasting.

i. Key features of Artificial Intelligence

• Learning ability: AI systems can learn from data. This capability enables them to improve their performance over time without needing explicit programming for every scenario. Machine learning and deep learning algorithms are often employed for this purpose, allowing the systems to identify patterns and make decisions.

• Autonomy: AI systems can operate independently and make decisions without human intervention. Autonomous systems, such as self-driving cars, are prime examples of AI that can perform tasks and make real-time decisions based on the environment, without requiring human input.

• Adaptability: AI systems can adapt to new data and evolving circumstances. For example, in customer service, AI chatbots can learn from interactions and refine their responses to improve the user experience.

• Problem-solving and reasoning: AI systems can apply logic to solve complex problems. Expert systems, for instance, utilise predefined rules and decision-making processes to emulate human problem-solving skills.

• Perception: AI systems can interpret and make decisions based on sensory inputs like images, sounds and text. Through technologies like computer vision and speech recognition, AI systems can "see" and "hear," allowing them to interact with the environment in a meaningful way.

• Natural language processing (NLP): AI can understand and generate human language. NLP enables machines to process and analyse large amounts of natural language data, facilitating tasks such as speech recognition, text translation, sentiment analysis and more.

• Predictive analytics: AI is capable of forecasting outcomes based on data analysis. For instance, predictive maintenance in industries uses AI to forecast machine failures, helping businesses minimise downtime and optimise maintenance schedules.

• Automation: AI is highly effective at automating repetitive tasks, making processes faster and more efficient. Robotic process automation (RPA) and AI-driven systems can automate administrative tasks, data entry, and other routine operations across various industries, including finance, healthcare, and retail.

(b) Sectors where artificial intelligence can be utilised

i. Healthcare AI is applied in diagnostics, treatment recommendations and drug discovery. Machine learning algorithms can analyse medical images to detect diseases such as cancer, while AI systems assist medical professionals in developing personalised treatment plans for individual patients.

ii. Manufacturing AI optimises production processes and enhances quality control. AI- powered robots and automation systems streamline production lines, increase output volumes and minimise errors, resulting in higher operational efficiency.

iii. Fashion technology In the fashion industry, AI supports design, inventory management and personalised shopping experiences.AI tools analyse consumer behaviour, recommend products tailored to individual preferences and predict emerging fashion trends to assist designers and retailers.

iv. Education AI is reshaping the education sector by creating personalised learning experiences. AI-driven platforms can adapt to the learning pace and style of individual students, providing tailored resources, exercises and real time feedback to enhance educational outcomes.

v. Security and surveillance AI technologies such as facial recognition and behavioural analytics are improving security measures by enabling real-time threat detection, monitoring of public spaces and rapid response to suspicious activities.

vi. Transportation AI is transforming the transportation industry through autonomous vehicles, intelligent traffic management systems and predictive maintenance solutions that reduce human error, optimise routes and improve overall safety standards.

(c) Challenges frequently faced when implementing artificial intelligence

• Job displacement and unemployment: One of the significant concerns with AI is its potential to replace human workers, especially in routine and repetitive roles. As AI systems automate tasks, there is a risk of unemployment, particularly in sectors like manufacturing and customer service.

• Malfunction and risks: AI systems can malfunction if they are poorly designed or if their algorithms are flawed. Misuse or improper handling of AI technologies can result in significant risks, particularly in critical areas such as healthcare or autonomous driving.

• Lack of human touch and emotional intelligence: AI cannot understand emotions or respond with empathy. In sectors such as healthcare or customer service, the absence of emotional intelligence can hinder the quality of interactions and impact outcomes.

• High cost and resource intensity: Developing and maintaining AI systems requires substantial investment in both hardware and software infrastructure. While the long-term benefits can be significant, the upfront costs can be a barrier for smaller businesses or less developed industries.

• Increased dependency on technology: Over-reliance on AI could lead to a diminished role for human decision-making. Additionally, if AI systems fail or are compromised, the consequences could be severe, especially in areas like security, healthcare, and critical infrastructure.

• Lack of creativity and originality: While AI can simulate creativity by processing and combining existing data, it cannot truly innovate or create original ideas. This limits its role in areas that require ground- breaking innovation or artistic expression.

Examiner’s report The question is in three parts. All parts of the question examine candidates’ knowledge of Artificial Intelligence (AI). It was observed that 90% of the candidate attempted this question and 45% of the number scored above average The common pitfalls of the candidates were their inability to explain the features of artificial intelligence (AI). Candidates are encouraged to thoroughly cover the subject's syllabus and utilise the ICAN study text adequately.

Marking guide Marks Marks (a) Identifying five key features of artificial intelligence 2½ Explaining the key feature of artificial intelligence 5 7½ (b) Stating five sectors where AI can be utilised 2½ Explaining the sectors where AI can be utilised 5 7½ (c) Highlighting the challenges of implementing artificial intelligence 5 Total 20 ICAN/252/F/A1 Examination No.................... INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA