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Free CIMA E1 Practice Exam with Questions & Answers | Set: 5

Questions 41

Which of the following is NOT a form of viral marketing?

Options:
A.

Email

B.

Text message

C.

Television advertisement

D.

Video clips (including those taken on mobile phones)

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Questions 42

A few years have passed since tech company NVision launched their new games console, Superbox. The product was once a star, with high, rising sales, but it is now selling quite poorly. In fact, it's selling so poorly that

NVision are no longer making a return on the product.

Which of the following strategies would be the BEST for NVision to implement?

Options:
A.

Pull out of the market or, if possible, sell the rights of Superbox to an individual or company who is willing to carry it on.

B.

Keep costs low and continue to sell the console.

C.

Develop the product for a specific market segment who continue to have a need for it - this will allow NVision to sell the product at a higher price.

D.

Allow the product to follow its natural life-cycle.

Questions 43

Which of the following functions is associated with the operating core of an organisation?

Options:
A.

Manufacturing and production

B.

Strategy evaluation

C.

Process standardisation

D.

Catering services

Questions 44

The secondary objectives of a not-for-profit organisation are economy, efficiency and effectiveness.

Which of the following gives the correct description of each of these?

A

Economy: Controlling costs.

Efficiency: Achieving objectives at minimum cost

Effectiveness A measure of achievement by reference to objectives

B

Economy Achieving objectives at minimum cost

Efficiency: A measure of achievement by reference to objectives

Effectiveness Controlling costs.

C

Economy: Controlling costs.

Efficiency: A measure of achievement by reference to objectives.

Effectiveness: Achieving objectives at minimum cost.

D

Economy: Achieving objectives at minimum cost.

Efficiency: Controlling costs.

Effectiveness A measure of achievement by reference to objectives

Options:
Questions 45

The development of a Corporate Digital Responsibility (CDR) strategy is increasingly common in modern business and will include 5 key areas including customer expectation

Which of the following best describes customer expectation in this context?

Options:
A.

Ensuring all members of society have the skill, tools and ability to access the online digital world

B.

Sharing data in a benevolent way to help society, this could help inform choices and improve management of information

C.

Using data in a responsible and secure way that is in line with customer and employees expectations.

D.

The need for transparency around the use of data and the ability to opt in and be rewarded for sharing data

Questions 46

YZ Company has grown rapidly and has recently recruited a finance director to set up a more structured finance function. During this process care will be needed to ensure effective lines of communication between different disciplines within the whole function and to recognise the interdependencies.

 

Which of the following are examples of the interdependence of elements of the finance function?

 

Select ALL that apply.

Options:
A.

Variance analysis reporting

B.

Taxation management

C.

Budget management

D.

Management reporting

E.

Statutory financial reporting

F.

Internal auditing

Questions 47

Which of the following is a primary objective of a not-for-profit organisation?

Options:
A.

Maximise benefit to beneficiaries

B.

Economy - controlling costs

C.

Maximise owner wealth

D.

Effectiveness in achieving objectives

Questions 48

The Statement of Financial Position is NOT normally used to make decisions concerning which of the following?

Options:
A.

Material purchases

B.

Buildings

C.

Trade payables

D.

Reserves

Questions 49

The Finance function of XZY company, which is based in the UK. are planning how they can minimise the corporation tax costs

Which of the following is correct?

Options:
A.

Tax avoidance aims to reduce the amount of tax payable and is legal

B.

Tax avoidance aims to reduce the amount of tax payable and is illegal

C.

Tax avoidance operates within the spirit of the law.

D.

Tax avoidance is the same as tax mitigation

Questions 50

Which of the following are benefits of appraisals? Select ALL that apply.

Options:
A.

Identifies where the employee needs improvement and how to go about it.

B.

Ties in with career planning.

C.

Sets targets to help improve employee motivation.

D.

Rewards performance above and beyond the expected.

E.

Allows manager/employee to exchange feedback.

F.

Can reduce the chance of confrontation occurring.

G.

The process is usually devoid of bias.