CIMA CIMAPRA19-E01-1 Exam Practice Test Instant Access

Question 1

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?

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

BKeep costs low and continue to sell the console.

CDevelop 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.

DAllow the product to follow its natural life-cycle.

Answer : A

Question 2

Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.

Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

AAn R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.

BA building that has been designed specifically for manufacturing light bulb filaments.

CHigh tech and expensive filling machines in the factory.

DA sales director who is well known and popular throughout the industry.

Answer : A

Question 3

Mitch owns a small furniture business, which he is keen to grow.

Which of the following would MOST benefit the growth of Mitch's business:

AForming an alliance with a local supplier.

BBecoming a shamrock organisation.

CBecoming a network organisation.

DOutsourcing all complementary and residual competencies.

EReducing the price of all products by a third.

Answer : A

Question 4

Cardboard box manufacturer Smurfat are giving their new employees an induction into the company's strategy. They see this as a crucial stage of the induction process and have asked Terrance, the communications

director, to take new employees through the strategy.

Which of the following should Terrance communicate to his new employees during their induction?

Select ALL that apply.

ATalk through the overall structure of the Smurfat.

BGive new employees an idea of the work culture at Smurfat.

CExplain the goals and motives of the Smurfat.

DMake Smurfat's disciplinary rules clear for the new employees.

EExplain what care and support Smurfat offers to new staff.

Answer : A, B, C

Question 5

Simone is a management accountant at a jewellers called ShinyShiny. She is currently conducting operational reporting for them.

Which of the following will Simone not discover during her operational reporting?

Select ALL that apply.

AThat ShinyShiny isn't able to pay back its loans.

BThat ShinyShiny's processes need to be improved.

CThat the level of sales in one shop are higher than another.

DThat the gold bangles sell better than the silver bangles.

EThat more men than women seem to be buying their products.

Answer : A, B

Question 6

Human Resource Management (HRM) and Personnel are different.

Which of the following is NOT a characteristic of Human Resource Management (HRM)?

AHRM relies on a modern, transactional approach.

BHRM addresses both operational and strategic matters.

CHRM focuses on facilitation rather than negotiation.

DHRM views employees as assets.

Answer : A

Question 7

Which THREE of the following suggest an integrative approach to organisational purchasing according to Reck and Long?

APurchasingmanagers are involved instrategy development.

BCompetitive strategies rely on the effectiveness of organisational purchasing.

CSuppliers are viewed as vital partners.

DSupply is obtained at the best price once requested by departments.

ETimely information about product prices and availability can be obtained through organisational systems.

FEfficiency is at least equal to other organisational operations such as payroll and invoicing.

Answer : A, B, C

CIMAPRA19-E01-1 E1 Managing Finance in a Digital World Exam Practice Test