Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What are Hofstede's four dimensions of national culture?

1. Power distance, social responsibility, egalitarianism, innovation

2. Power distance, uncertainty avoidance, individualism-collectivism, masculinity

3. Assertiveness, long-term orientation, indulgence, and gender equality

4. Risk-taking, uncertainty avoidance, power hierarchy, and educational achievement

The correct answer is: Power distance, uncertainty avoidance, individualism-collectivism, masculinity

Hofstede's framework identifies four key dimensions that help to understand cultural differences across nations. The correct choice highlights the dimensions of power distance, uncertainty avoidance, individualism-collectivism, and masculinity. Power distance refers to the degree of inequality that exists – and is accepted – between people with and without power. Cultures with high power distance tend to have a significant level of hierarchy, while those with low power distance often emphasize equality and decentralization. Uncertainty avoidance describes the extent to which cultures tolerate ambiguity and uncertainty. Societies with high uncertainty avoidance prefer structured conditions and formal rules, while those with low uncertainty avoidance are more open to new ideas and more adaptable to change. Individualism-collectivism describes whether a culture values individual achievements and rights (individualism) or prioritizes the group's welfare and collective interests (collectivism). Masculinity refers to the distribution of emotional roles between the genders, where masculine cultures value competitiveness, assertiveness, and material success, in contrast to more feminine cultures that prioritize relationships and quality of life. This combination of dimensions helps analysts and businesses understand how cultural values influence behavior and decision-making in different societies, enabling more effective communication and management strategies.