CIMA CIMA-E2 Online Practice Questions and Exam Preparation

CIMA CIMA-E2 Online Questions & Answers

• Question 121:

  A low cost airline is operating three flights a day between two industrial cities in neighbouring countries. The cities are 300 km apart and the terrain between the two countries is mostly flat grasslands. The two cities are also linked by motorways and a railway line.

  At first the airline enjoyed first mover advantage and generated healthy profits for three years. But more recently, the airline is experiencing intense competitive pressures, reduced passenger numbers and lower returns. The airline directors are using Porter's Five Forces framework to analyse the nature and severity of the various competitive forces being experienced.

  In the context of this model which of the following forces would be considered as a threat of a substitute product or service?

  A. High speed rail connection between the two cities
  B. National airlines competing in low cost markets
  C. Foreign airline now offering a service on this route
  D. Corporate customers driving down ticket prices
  A. High speed rail connection between the two cities

• Question 122:

  Which of the following does NOT describe the theory of the transformational super-leader?

  A. Someone with the right personality, appearance and attributes.
  B. Someone who is caring, inspirational, visionary, ethical and a risk-taker.
  C. Someone with a style consistent with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisation.
  D. Someone who has followed a leadership course at Harvard Business School.
  D. Someone who has followed a leadership course at Harvard Business School.

• Question 123:

  The means by which competitive advantage might be gained differs, depending on whether a resource based approach or a positioning approach is adopted.

  Which of the following options characterises the resource based approach?

  Select ALL that apply:

  A. Superior profitability depends on the firm's possession of unique resources.
  B. Super normal profits result from either cost leadership, differentiation or focus.
  C. Competitive advantage derives from a firm's position in relation to its competitors, customers and stakeholders.
  D. Competitive advantage stems from some valuable asset or competence possessed by the firm.
  E. Organisations need to ensure they are continually monitoring the market place to make sure that their core competences are still valid.
  A. Superior profitability depends on the firm's possession of unique resources.
  D. Competitive advantage stems from some valuable asset or competence possessed by the firm.
  E. Organisations need to ensure they are continually monitoring the market place to make sure that their core competences are still valid.

• Question 124:

  Four orthopaedic surgeons in a busy hospital department have very different work habits. Each has their own team of medical technicians who are used to the surgeons' personal preferences and are very comfortable with their routines; they basically do the same things every day. This way of working has gone on for several years.

  When a new administration manager suggested that they train all of the technicians to work with all the surgeons this led to significant resistance from all of the parties involved. The technicians were concerned that they would no longer be able to perform their usual daily tasks.

  On the basis of the scenario what would be the main cause of their resistance?

  A. The technicians' fear that they would be forced out of their regular habits.
  B. The technicians' concern over personal loss such as benefits and privileges.
  C. The technicians' fear that the changes proposed would harm the efficiency of the department.
  D. The technicians' belief that role ambiguity and uncertainty would increase.
  A. The technicians' fear that they would be forced out of their regular habits.

• Question 125:

  Which of the following represents the three steps from Lewin's three-step model?

  A. Unfreeze, move, refreeze
  B. Assess, negotiate, collaborate
  C. Review, change, implement
  D. Design, implement, review
  A. Unfreeze, move, refreeze

• Question 126:

  According to Kotter's process of change, what is the purpose of building a guiding coalition?

  A. To give the change direction and focus.
  B. To ensure all key stakeholders are brought into the process.
  C. To communicate the long-term vision and strategy.
  D. To enable actions by removing barriers.
  E. To cement the change in the culture of the organisation.
  F. To generate short-term wins.
  A. To give the change direction and focus.

• Question 127:

  Because of the severity of actions of the employer an employee takes the decision to resign. This could be classed as which of the following?

  A. Calculative dismissal
  B. Wrongful dismissal
  C. Redundancy
  D. Constructive dismissal
  D. Constructive dismissal

• Question 128:

  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.
  D. Provides a basis for streamlining the finance function.

• Question 129:

  The functions of mentoring include which THREE of the following?

  A. A career function concerned with enhancement through exposure, visibility and sponsorship.
  B. A Psychological function deriving from aspects of the relationship that advance competence and effectiveness.
  C. A contact function that expects mentees' contacts to provide them with valuable contacts.
  D. A 'drawing-out' function to increase an individual's ability and willingness in a specific subject or problem area.
  E. A training function aimed at continuous improvement of employee skills.
  A. A career function concerned with enhancement through exposure, visibility and sponsorship.
  B. A Psychological function deriving from aspects of the relationship that advance competence and effectiveness.
  C. A contact function that expects mentees' contacts to provide them with valuable contacts.

• Question 130:

  The Finance Director in an organisation has suffered from some criticism in her management approach, in particular her poor communication methods. For example, using finance jargon in her emails and sending messages out of normal

  office working hours. This has lead to some of the members of staff being demotivated.

  Which of the following possible recommendations would improve the communication situation present in this organisaion?

  Select ALL that apply.

  A. Arrange meetings whereby the Finance Director is the facilitator and an agenda is set which ensures clear objectives are established and action points noted and followed up.
  B. Send the members of staff on an away day event to improve morale.
  C. Have a glossary of key terminology, e.g. the meaning of the financial information abbreviations.
  D. Recruit a new Finance Director.
  E. Ensure the appropriate channels of communication are used to suit the situation and timing of responses is allowed.
  A. Arrange meetings whereby the Finance Director is the facilitator and an agenda is set which ensures clear objectives are established and action points noted and followed up.
  C. Have a glossary of key terminology, e.g. the meaning of the financial information abbreviations.
  E. Ensure the appropriate channels of communication are used to suit the situation and timing of responses is allowed.