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Free CIMA E1 Practice Exam with Questions & Answers | Set: 6

Questions 51

A company is expanding its baby clothing product range to include all items for infants, for example feeding and bathing equipment. As this is a new venture for the company, the Board of Directors has agreed that market research is a necessary exercise, but it is undecided as to which is the most efficient and effective method. Which of the following methods of research would be most appropriate?

Options:
A.

Questionnaires

B.

Focus groups

C.

Experimentation

D.

Interviews

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Questions 52

The use of big data and smart technology by the sales and marketing function of an organisation is most likely to be associated with which of the following?

Options:
A.

Service improvements

B.

Alleviating bottle necks

C.

Supply chain collaboration

D.

Social media trends

Questions 53

Which of the following effects on tax is a benefit of the implementation of Corporate Social Responsibility (CSR) strategies?

Options:
A.

Reduction in environmental taxes

B.

Reduction in value added tax

C.

Reduction in income tax

D.

Reduction in corporation tax

Questions 54

A new Team Leader in Internal Audit has been asking team members about tasks that they do not think are part of their responsibility as they go beyond compliance with legislation. You are preparing a response to this to include an explanation of the requirements of a social audit. Which of the following would you include in your response?

 

Select ALL that apply.

Options:
A.

Observance of equal opportunities beyond that required by legislation

B.

Ethical investment decisions

C.

Use of sustainable raw materials

D.

Adequacy of audit trail

E.

Existing and potential management weaknesses and ways to rectify them

F.

Operation of risk management process(es)

Questions 55

A high volume operation is likely to be characterised by which of the following?

Options:
A.

High capital intensity

B.

High labour pay rates

C.

High labour flexibility

D.

High cost inputs

Questions 56

Which of the following would be within the role of an operational line manager?  

 

Select ALL that apply.

Options:
A.

Interviewing potential new recruits

B.

Conducting appraisals with staff

C.

Carrying out psychometric testing

D.

Deciding on strategic objectives

Questions 57

Which of the following is a potential advantage of outsourcing?

Options:
A.

Finality of decision

B.

Reduced capital expenditure

C.

Reduced transaction costs

D.

Reduced core competencies

Questions 58

Arrange the stages of the product life-cycle in the correct order.

E1 Question 58

Options:
Questions 59

Which of the following do working capital reports include?

Options:
A.

Performance reports

B.

Cost of sales

C.

Budgets

D.

Cash reports

Questions 60

L and M are setting up a business offering guided hiking holidays in national parks throughout the world. The price of the holidays will include airfares and accommodation; their initial research shows that there will be a huge variability in the cost of both.

What type of pricing will be appropriate for their holidays?

Options:
A.

Price discrimination

B.

Skim pricing

C.

Penetration pricing

D.

Loss leader pricing