CIMA-E2 Real Exam Questions and Verified Answers

Question 1 Multiple choice

The PRINCE2 project management methodology has consistent principles governing roles, plans, processes and risks.

Which TWO of the following statements are correct?

A
Team plans are mandatory within PRINCE2.
B
A PRINCE2 organisation is a technical project team, assembled to achieve an unspecified objective.
C
A project issue is any factor which could have an effect on the project (either detrimental or beneficial).
D
One of the objectives of the process "Initiating a Project" is to define how the required product quality will be achieved.

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Correct answers: C, D

Question 2 Single choice

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?

A
Delegating
B
Telling
C
Selling
D
Participating

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Correct answer: A

Question 3 Single choice

Which of the following is NOT a benefit of a good audit system?

A
Provides a form of internal control.
B
Provides a basis for improving the finance function's presentation of a company's financial records.
C
Provides a basis for improving the finance function's efficiency and effectiveness in the information it presents to management.
D
Provides a basis for streamlining the finance function.

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Correct answer: D

Question 4 Single choice

A company has used the Boston Consulting Group (BCG) matrix to plot the position of its products according to their relative market share and the growth of the market.

It has identified that it has several products under the heading of star.

Which of the following best describes its likely cash position?

A
Cash rich
B
Cash neutral
C
Cash negative
D
This model doesn't consider the cash position

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Correct answer: B

Question 5 Multiple choice

A company is currently at the stage of organising the data which is captured within the big data process.
What will they need to do next in order to complete all stages?

Select ALL that apply.

A
The data will need interpreting, so it can be used to answer questions and help illustrate results
B
The data will need to be illustrated in a clear and digestible format
C
A search system will need to be implemented in order to search across the vast data landscape
D
Data must be shared, allowing the relevant people access to the information produced
E
The type of data needed will be identified and proxosion made for recording it
F
Proxosion needs to be made to retain the vast amounts of information the big data process produces

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Correct answers: A, B, C, D

Question 6 Single choice

DD is in charge of a group of twelve people involved in complex work. The group work together amicably and DD's leadership is valued. DD is supported by KK, who often deals with the group on behalf of DD.

Recently KK resigned for family reasons, along with another member of the group who became despondent with change and DD has now recruited new members to the group.

DD has found the group dynamics have changed and various members complain about what they are expected to do.

Which of the following is the least appropriate approach that DD should adopt to ensure the group reverts back to its former cohesiveness?

A
Break the group into smaller teams and allow the groups to evolve again.
B
Introduce a series of team building training sessions.
C
Become directly involved in structuring the progression of the group, influencing the development of roles.
D
Emphasise the need for a new approach by carrying out disciplinary procedures for the individuals who are complaining.

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Correct answer: D

Question 7 Multiple choice

The advantages of embedding the finance function within the business unit include which THREE of the following?

A
It allows the accountant to provide information specific to a particular business unit with greater efficiency.
B
It prevents duplication of effort across the organisation.
C
It enables strong relationships to be developed between the accountant and the rest of the management team within a particular business unit.
D
It means that the accountant is able to develop best practice that can be of benefit to the whole company.
E
It allows the accountant to build up detailed local knowledge and understanding of the business unit.

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Correct answers: A, C, E

Question 8 Multiple choice

Max is a quiet member of staff who likes to receive all the details before making decisions in the workplace.

He is very satisfied with the way he works currently and is reluctant to change the way he works when you suggest implementing a new system to deal with enquiries. These changes form a major part of his work allocation.
Which would be the most appropriate methods to deal with any resistance to change you may experience from Max?

Select ALL that apply.

A
Coercion
B
Manipulation / Co-optation
C
Participation / involvement
D
Education
E
Facilitation / support
F
Negotiation / agreement

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Correct answers: B, C, D, E

Question 9 Single choice

In order to compete successfully Company A needs to change. It needs to become more innovative and generate new ideas to get ahead of the competition.

Which of the strategies below, relating to conflict management (Mainwaring 1991), would help Company A to achieve this?

A
Conflict reduction
B
Conflict orchestration
C
Conflict suppression
D
Conflict resolution

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Correct answer: B

Question 10 Multiple choice

Examine the network diagram shown and identify ALL of the statements below that are true.

A
Task C is a predecessor of E
B
Task G may begin when either Task B or Task F have finished
C
When Task A is complete, three tasks may begin
D
Task D is a successor to F

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Correct answers: A, C