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Free CIMA E1 Practice Exam with Questions & Answers | Set: 8

Questions 71

Clear career promotion and progression ladders are most obvious under which type of organisational structure? 

Options:
A.

Horizontal

B.

Vertical

C.

Networked

D.

Virtual

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Questions 72

XYT company is planning to update its IT and have asked the finance function to assist by establishing suitable key performance indicators (KP1). Which of the following is an example of a suitable KPI for strategic activities'?

Options:
A.

Ticket response rates for IT issues sent to IT support

B.

IT function as an 'enabling' factor in the market place

C.

IT spend per employee

D.

IT utilisation

Questions 73

AB Company operates a capital intensive production process and cannot quickly add capacity. Which of the following best describes this production strategy?

Options:
A.

Maintaining a level capacity plan

B.

Matching production capacity to demand 

C.

Influencing demand to match production capacity

D.

Forecasting demand and matching this to production capacity

Questions 74

A decision has been made to close down a branch of a restaurant.

Which of the following is quantitative information produced by the finance function that will have supported this decision being made?

Options:
A.

A map showing the locations of the suppliers.

B.

A listing showing the number of employees who will lose their jobs.

C.

A graph showing declining profitability of the branch.

D.

A costing of the total redundancy payments that will need to be made.

Questions 75

Information relating to production, accounting records and payroll are most likely to be used by which of the following stakeholders?

Options:
A.

Key stakeholders

B.

Connected stakeholders

C.

External stakeholders

D.

Internal stakeholders

Questions 76

Which of the following is a disadvantage of virtual operations?

Options:
A.

Flexibility and speed of operations

B.

Reduced investment in assets

C.

The suppliers/resources may also be available to rival operations

D.

Possible linkages in the value chain

Questions 77

Vladimir is the managing director of a IT repair business called Screenhax. The company has been operating for 10 years and has around 60 members of staff.

Donald, one of Vladimir employees, committed the act of 'skimming".

What did Donald do?

Options:
A.

Donald repaired a customer's broken computer but did not register the job through the computer system. He then pocketed the cosh.

B.

Donald was responsible for paying all employees at Screenhax. He took advantage of this responsibility by creating a fictitious person and directing money to their account.

C.

Donald stole IT equipment from the shop.

D.

Donald borrowed the Screenhax repair van and used it for his own personal commitments without the consent from Vladimir.

E.

Donald's wife had a problem with her computer, so he stole one of the shop's refurbished computers and gave it to her to use.

Questions 78

Which of the following is an advantage of outsourcing?

Options:
A.

Cost savings may be made

B.

Core competence may be strengthened

C.

Data confidentiality is stengthened

D.

Continuity is guaranteed

Questions 79

An electrical goods company produces colourful brochures for customers.

 

Which element of the marketing mix does this represent?

Options:
A.

Physical evidence

B.

Product

C.

Price

D.

Packaging

Questions 80

JFD is a pet supplies retailing business.

Using customer data to build the target customer profile. JFD plans to create personalised advertising and communications more specific to customers' wants and needs in its market It is hoped that this will create interaction and responses from these customers.

Which of the following is JFD using?

Options:
A.

Supply chain management

B.

Digital asset management

C.

Customer relationship management

D.

Market segmentation

Exam Code: E1
Certification Provider: CIMA
Exam Name: Managing Finance in a Digital World
Last Update: Jul 17, 2025
Questions: 336

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