Free CIMA E3 Practice Exam with Questions & Answers | Set: 5

You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.

Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

EFG is a private hospital. It specialises in state-of-the-art laser surgery, an area which has developed rapidly in the last 10 years. Most of the staff of EFG are used to change, as developments in technology, new surgical techniques and customer demands have changed rapidly during this time. However, in the last three years the economic recession has had a significant impact upon EFG, with the numbers of private customers reducing and its profits falling sharply.

The Board of Directors has recently announced that it is to restructure the Organization and rationalise some of the services it offers. A small number of staff will be made redundant and those remaining will have to take on extra responsibilities with no extra pay. Also, the current generous overtime payments are to be drastically cut. Many staff have expressed concern at the impact that these changes will have on them.

The Board of Directors has clearly communicated the economic reasons for change to the staff through several meetings and are operating an open door policy, whereby staff can discuss the changes with their line managers at any time. 

Which of the following, according to Kotter and Schlesinger,  is the MOST likely reason for resistance among EFG's staff?

JKL is a bank with a large number of personal customers. 

A member of staff has reported their loss of a portable electronic storage device to his line manager.

The portable electronic storage device contains customer account details, including secure information such as personal login details to access personal accounts. JKL has a clear policy that forbids staff from downloading customer data on to portable electronic storage devices. 

It would be difficult for a member of the public to access the information on the device.

Which of the following would you advise JKL to do?

A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.

Which of the following statements regarding Service Level Agreements is NOT correct?

HHH is about to undergo a period of significant change.  HHH intends to draw upon the model suggested by Beer and Nohria, concerning 'Theory E' and 'Theory O'. In which circumstances should HHH use 'Theory O' strategies?

Select ALL that apply.

F is an entrepreneur who runs a chain of health food shops in Country M. There are no other similar health food shops operating in Country M and the chain has rapidly grown over the last three years. F wishes to continue to grow his chain of shops but is aware that he lacks the funds to enable him to grow at the pace which the market is demanding. He is also concerned that continued rapid growth will result in him losing control over the strong brand reputation and identity that he has built up for the chain of shops. 

Which of the following would be the most feasible strategy for F to adopt to continue to grow his business?

Company GG is considering its future strategy on delivering a long-term competitive advantage. The Finance Director has recommended that the Board includes in the strategy a separate section on sustainability. 

Which of the following is NOT a correct sustainability statement? 

ABC is an online bank which has just reported substantial trading losses. It has received advice from a leading business consultancy that it should implement the following two strategies:

1. Take advantage of its reputation and brand image by entering a new industry.

2. Update all its networks to fifth generation (5G) as soon as possible. Which TWO of the following strategies has ABC been advised to implement?

BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.

The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.

Which of the following statements are correct?

Select ALL that apply.

An IT project is currently being undertaken by VVV, a large university. The project is to design and install a secure information system network for all academic staff and administrative staff in the university. The Executive Board of VVV has insisted that the key objective of the project team is to track and monitor how the information system is being used by the academic staff and the administrative staff once it is implemented.

Which of the following would be an appropriate performance measure for the key objective set by VVV's Executive Board?