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Free CIMA E2 Practice Exam with Questions & Answers

Questions 1

Based on the Tuckman model of team development, identify the stage when team relationships should start to harmonise and the team agrees on normal work patterns and the best way to tackle the work ahead of them. Job roles and relationships within the team are also agreed.

Options:
A.

Norming

B.

Storming

C.

Forming

D.

Performing

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Questions 2

A manager of a finance department has been asked to take on additional work and has been advised to delegate some of his current jobs to his subordinates. He has a good relationship with his team and understands both their abiilty to contribute good ideas and that their level of cooperation will effect his success.

 

Which of the methods of delegation below is likely to be the most successful for him?

 

Options:
A.

Consultation

B.

Explanation

C.

Custom and Practice

D.

Abdication

Questions 3

Which of the models below identifies triggers for change from the macro environment?

Options:
A.

Michael Porter's Five Forces

B.

Michael Porter's Diamond

C.

LoNGPEST

D.

Ansoff's Growth Matrix

Questions 4

Bob is the Finance Director of a manufacturing business selling luggage sucn as suitcases. He decides to undertake a business process re-engineering of the credit control function in order to achieve dramatic

improvements.

What wouldn't be classed as the main improvements bob expects to deliver?

Select ALL that apply.

Options:
A.

To change the culture of the team

B.

To improve security of information

C.

To automate the credit control process to reduce costs

D.

To improve the speed of the process to improve efficiency

E.

To reduce errors in credit control and produce more accurate information

F.

To do this in line with new sophisticated information systems

G.

To improve the motivation of the team

Questions 5

The advantages of effective delegation include which THREE of the following?

Options:
A.

Workloads of managers are reduced with subsequent reduction in stress.

B.

The aspiration through eventual promotion of subordinates who accept delegated duties must be met.

C.

Managers are left free to carry out non-routine tasks while passing on more routine tasks to subordinates.

D.

Training of subordinates is assisted by the delegation of tasks and is thus a very effective method of training.

E.

Effective delegation can be achieved by assigning agreed tasks, specifying performance levels and ensuring they are understood.

Questions 6

Michael Porter argued that nations can develop advanced business environments that are conducive to business development and lead to firms from one nation gaining a competitive advantage over firms from other countries. Porter used a diamond shaped diagram as the basis of a framework to illustrate and analyse the determinants that lead to national advantage.

 

Which of the following factors are present within the diamond framework?

 

Select ALL that apply.

Options:
A.

Factor conditions

B.

Demand conditions

C.

Firm strategy, structure and rivalry

D.

Related and supporting industries

E.

Export opportunities

F.

Education resources

Questions 7

Hersey and Blanchard developed a theory of situational leadership which suggested that successful leaders should change their leadership style according to the maturity of the subordinates they are leading. This includes an assessment of their professional ability and their readiness to undertake set tasks.

 

Based on this theory, which leadership style would be best suited to a subordinate showing the highest levels of maturity, readiness, ability and willingness to tackle the work available?

Options:
A.

Delegating

B.

Telling

C.

Selling

D.

Participating

Questions 8

James argues that performance appraisal has its roots in three substantiated psychological principles, meaning that people work / learn / achieve more when they are given the opportunities.

 

Which of the following does NOT apply?

Options:
A.

Information for human resource planning.

B.

Involvement in the setting of tasks and goals.

C.

Adequate feedback as to how they are performing, in other words knowledge of results.

D.

Clear attainable goals so they know what to strive for.

Questions 9

An auto company A, has formed a joint venture with another auto company B to incorporate engines produced by company B into its own automobiles.

 

Which of Ansoff's strategic directions would best describe this strategic move?

Options:
A.

Market penetration

B.

Market development

C.

Product development

D.

Diversification

Questions 10

Staff in Company A are sceptical that the new IT system being purchased will be properly implemented.

 

Which of the change management options below should management use to break down the resistance against the new system?

Options:
A.

Coercion

B.

Participation

C.

Manipulation

D.

Facilitation