CIMA CIMAPRA19-E03-1 Exam Practice Test Instant Access

Question 1

An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?

ARational model

BLogical incrementalism

CFreewheeling opportunism

DEmergent approach

Answer : C

Question 2

YC is a government funded hospital specialising in degenerative hearing conditions YC is renowned for it's pioneering work resolving chronic ear problems and has, in the last year, conducted a record number of operations and achieved high levels of success. The excellent reputation of YC has led to high demand and a considerable strain on resources

Although last year the average cost per patient fell, and success rates far exceeded targets, overall spend increased significantly. YC hospital is expected to provide value for money (VFM). Which aspect of VFM has YC NOT managed to achieve in the last year?

AExcellence

BEffectiveness

CEconomy

DEfficiency

Answer : C

Question 3

Z is an organisation that designs and manufactures fibre optic connectors. It works closely with its suppliers and has built an online area that it uses to share documents, designs, and photographs with its suppliers. The area also facilitates real time communication with suppliers either via a computer or a mobile phone.

Which of the following best describes Z's online area?

AAn internet

BA multinet

CAn intranet

DAn extranet

Answer : D

Question 4

Which THREE of the following statements are valid when considering setting and developing objectives for Not For Profit Organisations (NFPOs)?

ANFP organisations use an approach based upon the three E's of efficiency, effectiveness and environment to set objectives

Bln NFP organisations efficiency and effectiveness are very important, but there is a risk efficiency becomes more important than service effectiveness

CThe objective setting exercise must balance the interests and concerns of all stakeholders, which may result in the NFP organisations setting a range of differing objectives.

DObjectives will not be based on profit achievement but rather on achieving a particular response from various stakeholders.

EIn setting these objectives NFP organisations will never consult or seek wider participation from other interested groups

Answer : B, C, D

Question 5

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences

Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

AContinue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups

BNegotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate

CMake a donation of $10,000 to town W as a contribution towards the construction of a new town hall.

DOffer staff a bonus when the project is successfully completed

DNegotiate a 5% reduction in the price of the blade manufacture.

Answer : A, B, C

Question 6

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

ACompetitive rivalry.

BThreat of substitutes.

CBargaining power of suppliers.

DThreat of new entrants.

EBargaining power of customers.

Answer : B, E

Question 7

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.

With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

ATeams that cross departmental boundaries can destroy shared values.

BTeams play minor roles in institutional change.

CIndividuals must become more than they were when working alone and must develop new commitments and behaviors.

DTeams should continue after their purpose has been served.

ETeams that cross departmental boundaries can develop new performance criteria.

FTeams enhance learning and address change directly through creating recommendations and new ideas.

Answer : C, E, F