CIMA CIMA-E2 Online Practice Questions and Exam Preparation

CIMA CIMA-E2 Online Questions & Answers

• Question 31:

  Which of the following best describes the resource based view of strategy?

  A. Carrying out a SWOT analysis to set strategy.
  B. Recognising that competitive advantage stems from some unique asset or competence possessed by the organisation.
  C. Recognising competitive advantage stems from scanning the environment.
  D. Setting a strategy by creating the conditions for new ideas to flourish.
  B. Recognising that competitive advantage stems from some unique asset or competence possessed by the organisation.

• Question 32:

  AW is a newly appointed manager of the accounts department in organisation S. Her appointment has been well received by members of the department who recognise AW as a skilled and well qualified accountant.

  However, AW has been frustrated by progress in departmental team meetings which tend to be unruly, unproductive and disorganised. AW recognises a need to improve the effectiveness of the meetings.

  Which THREE actions should AW take in order to have more effective meetings?

  A. Produce an agenda at the meeting
  B. Determine the purpose of the meeting
  C. Publish lengthy and detailed minutes
  D. Manage the plan of action
  E. Establish who should attend
  F. Allow attendees to talk through issues with each other independent of the chairperson
  B. Determine the purpose of the meeting
  D. Manage the plan of action
  E. Establish who should attend

• Question 33:

  In terms of Porter's Diamond model, a DEMAND condition as applied to the brewing industry in Germany would be which of the following?

  A. German consumers are loyal and enthusiastic about German beer, and are keen to purchase new products.
  B. Germany has a network of firms and suppliers that support each other in becoming stronger in the brewing industry.
  C. Germany has a number of strong foreign competitors in the brewing industry.
  D. Germany possesses a number of secret recipes in brewing that are not available to foreign competitors.
  A. German consumers are loyal and enthusiastic about German beer, and are keen to purchase new products.

• Question 34:

  Conflict has heightened between the departments of a textile manufacturer, following a recent decision by the manager of the cloth inspection department to a tightening up of the inspection standards. She insists that the quality of output has to improve if the organisation is to remain competitive.

  This has resulted in some staff being idle more frequently and the sight of this idle time has frustrated the management and other employees in the weaving department, due to the direct link between time and bonus payments.

  Using the Thomas-Kilman Conflict Mode Instrument, which of the following would be the most appropriate method of resolving the conflict in this situation?

  A. Competing
  B. Collaborating
  C. Avoiding
  D. Accommodating
  B. Collaborating

• Question 35:

  A leader of a new project at a marketing agency believes that good leadership requires focus on both the task needs and individual needs.

  Based on Adair's action-centered leadership theory, which of the following skills is the leader less likely to have due to this?

  Select ALL that apply.

  A. Setting performance standards
  B. Checking performance against plan
  C. Controlling quality of work
  D. Training and mentoring
  E. Building team spirit
  F. Ensuring communication within group
  A. Setting performance standards
  B. Checking performance against plan
  C. Controlling quality of work
  D. Training and mentoring
  E. Building team spirit
  F. Ensuring communication within group

• Question 36:

  A company has a number of Strategic Business Units (SBUs), one of which operates in a market that is experiencing high growth. The SBU has only been in operation for a short while and therefore its market share relative to its competitors is small.

  Which of the following is the most appropriate term for the SBU according to the Boston Consulting Group model?

  A. Dog
  B. Star
  C. Cash Cow
  D. Question Mark
  D. Question Mark

• Question 37:

  W is the supervisor of the house-keeping team in a large hotel. X, a member of the team, is consistently late to work which means that other team members have to perform extra work. A number of team members have also complained to W

  about X's aggressive behaviour. Two months ago W spoke to X informally about these issues and for a short period things improved.

  But it is now clear that X is again displaying unacceptable behaviour and upsetting colleagues. W knows further action must now be taken to deal with the situation.

  With reference to the disciplinary process, which is the best course of action for W to take?

  A. Write a formal letter to X stating that if the unacceptable behaviour does not stop immediately X will be dismissed without further notice.
  B. Issue a formal verbal warning via a formal interview, with a record of the interview kept on file.
  C. Reduce the paid hours allocated to X as a temporary punishment until the behaviour improves.
  D. Speak to X informally in a private office and ask that X improves their behaviour and apologises to colleagues.
  B. Issue a formal verbal warning via a formal interview, with a record of the interview kept on file.

• Question 38:

  The purpose of PEST analysis is described by which of the following?

  A. To examine the competitive forces at work in the industry.
  B. To determine the strengths and weaknesses of the organisation.
  C. To assess the power of the internal stakeholders.
  D. To assess the threats and opportunities posed by the wider environmental forces.
  D. To assess the threats and opportunities posed by the wider environmental forces.

• Question 39:

  According to Kurt Lewin which of the following leadership styles was thought to result in the highest level of productivity and satisfaction?

  A. Laissez-faire
  B. Authoritarian
  C. Democratic
  D. Benevolent Authoritative
  C. Democratic

• Question 40:

  For complex projects, Gantt charts have limitations. Which THREE of the following apply?

  A. They do not reveal team problems due to unexpected delays
  B. They do not help in the coordination of resources and networking requirements
  C. They do not show the degree of completion for each phase of the project
  D. They do not provide objective activity times
  E. They do not allow the calculation of precise completion times
  A. They do not reveal team problems due to unexpected delays
  B. They do not help in the coordination of resources and networking requirements
  C. They do not show the degree of completion for each phase of the project