cima cimapra19 e01 1 practice test

E1 Managing Finance in a Digital World

Last exam update: Nov 26 ,2025
Page 1 out of 16. Viewing questions 1-15 out of 235

Question 1

Company X is a manufacturing company. It is implementing a new IT system within the accounts
department.
Which of the following is the most appropriate organisational structure for this project?

  • A. Geographical
  • B. Matrix
  • C. Divisional
  • D. Functional
Mark Question:
Answer:

B

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Question 2

When considering companies which focus on more than just commercial issues, which TWO of the
following would be associated as a key element of a corporate social responsibility (CSR) strategy?

  • A. Ethical
  • B. Community
  • C. Share price
  • D. Sales volume
  • E. Profitability
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Answer:

A, B

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Question 3

A facilities management company sells to local councils.
Which THREE of the following are appropriate methods of marketing?

  • A. Personal selling
  • B. Exhibitions
  • C. Technical seminars
  • D. Celebrity endorsements
  • E. Newspaper adverts
  • F. Social media
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Answer:

A, B, C

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Question 4

Which TWO of the following are examples of a knowledge work system?

  • A. Computer Aided Design (CAD)
  • B. Transaction Processing System (TPS)
  • C. Computer Aided Manufacturing (CAM)
  • D. Materials Resource Planning (MRP)
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Answer:

A, C

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Question 5

Which of the following is a primary objective of a not-for-profit organisation?

  • A. Maximise benefit to beneficiaries
  • B. Economy - controlling costs
  • C. Maximise owner wealth
  • D. Effectiveness in achieving objectives
Mark Question:
Answer:

A

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Question 6

An internal audit department is set up to help prevent fraud.  Which of the following are possible
implications if fraud is allowed to take place?
Select ALL that apply.

  • A. Loss of new investors
  • B. Theft of goods
  • C. Criminal charges
  • D. Inadequate segregation of duties
Mark Question:
Answer:

A, B, C

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Question 7

Which of the following can facilitate innovation within an organisation?
Select ALL that apply.

  • A. The communications system
  • B. The leadership style
  • C. A blame culture
  • D. A formal structure
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Answer:

A, B

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Question 8

Which TWO of the following are activities associated with setting up a new IT system?

  • A. Service support
  • B. Database management
  • C. Design and development
  • D. Testing
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Answer:

C, D

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Question 9

Which of the following is NOT an advantage of remote working for an organisation?

  • A. Increased employee motivation
  • B. Increased employee commitment
  • C. Increased co-ordination of employees
  • D. Reduced absenteeism of employees
Mark Question:
Answer:

C

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Question 10

A high volume operation is likely to be characterised by which of the following?

  • A. High capital intensity
  • B. High labour pay rates
  • C. High labour flexibility
  • D. High cost inputs
Mark Question:
Answer:

A

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Question 11

Which of the following are advantages of a virtual team?
Select ALL that apply.

  • A. The costs of a central office are not needed.
  • B. New members can be brought in and out of the team easily.
  • C. Members do not feel isolated.
  • D. It is easier to establish decision making processes.
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Answer:

A, B

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Question 12

Inventory control, which maintains a low level of inventory, is important to ensure which of the
following?

  • A. Low holding costs
  • B. Uninterupted production
  • C. Continual customer satisfaction
  • D. High level of redundant stock
Mark Question:
Answer:

A

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Question 13

Which of the following is NOT a key feature of total quality management (TQM)?

  • A. A staff appraisal system is used
  • B. Management is committed to improvement
  • C. All value chain participants are involved
  • D. Costs for failure are reduced
Mark Question:
Answer:

A

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Question 14

Which of the following is an example of sustainability impacting operations management?

  • A. A company only buys printer paper that has been recycled
  • B. A company has a whistle-blowing policy
  • C. A company keeps profits within the business for future investment
  • D. A company sells goods to developing nations
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Answer:

A

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Question 15

Which one of the following structures primarily suits a nationwide business with three product lines;
for example, soup, condiments and baby food?

  • A. Functional
  • B. Divisional
  • C. Matrix
  • D. Geographical
Mark Question:
Answer:

B

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