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CIMA Managing Finance in a Digital World Sample Questions:

1. Which TWO of the following statements are NOT aims of a reward system?

A) To control costs
B) To ensure consistency and fairness
C) To encourage excessive risk taking
D) To comply with legislation
E) To reward poor performance

2. There are four stages of development of supply chain management, according to Reck and Long's strategic positioning tool. Which stage of this model does the following description identify?
Emphasis is on better co-ordination between departments and suppliers involving timely communication about changes in price and availability of materials.

A) The integrative stage
B) The independent stage
C) The passive stage
D) The supportive stage

3. A boiler repair business uses an expert system in the form of a fault diagnostic system. What benefits does this give to the business?
Select ALL that apply.

A) The system can be used for other purposes such as staff rotas.
B) Junior technicians are able to identify faults without a detailed knowledge.
C) Faults are diagnosed quicker so customer service is improved.
D) The business is less reliant on the senior technician for solving problems.
E) The business saves money by needing less senior mechanics and repairing boilers quicker.
F) The system generates customer invoices quickly.

4. Which of the following is an advantage of a functional organisational structure?

A) There is a clear career path for employees to work their way up through.
B) The structure is easily adapted for further diversification.
C) The owner has a greater level of control over the workforce and all decisions.
D) It encourages teamwork and the exchange of opinions and expertise.

5. Company Q has several layers of management. The Chief Executive Officer (CEO) wishes to remove some of these layers to streamline the organisation and increase efficiencies. The initial plan is for third party contractors to take over support activities. What change in the organisation is the CEO making?

A) Horizontal expansion
B) Vertical expansion
C) Outsourcing
D) Alliance agreement

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