CIMA CIMA-E2 Online Practice Questions and Exam Preparation

CIMA CIMA-E2 Online Questions & Answers

• Question 41:

  Which type of culture, according to Charles Handy, is identified by an individual's tasks being clearly defined and their power coming from their position in the hierarchy?

  A. Power Culture
  B. Task Culture
  C. Role Culture
  D. Person Culture
  C. Role Culture

• Question 42:

  In the model of the organisational iceberg, which of the following is NOT one of the hidden elements?

  A. Communication pattern
  B. Feelings
  C. Style
  D. Structure
  D. Structure

• Question 43:

  Two management actions that would be expected to occur at the START of most successful organisational change programmes are:

  A. 'Build a sense of urgency' and 'Create a guiding coalition'.
  B. 'Hire and develop employees who can embrace the vision' and 'Reinvigorate the change process with new projects'.
  C. 'Embed the new routines' and 'Prepare for the next round of change'.
  D. 'Empower broad-based action' and 'Consolidate the change'.
  A. 'Build a sense of urgency' and 'Create a guiding coalition'.

• Question 44:

  Michael Porter argued that nations can develop advanced business environments that are conducive to business development and lead to firms from one nation gaining a competitive advantage over firms from other countries. Porter used a

  diamond shaped diagram as the basis of a framework to illustrate and analyse the determinants that lead to national advantage.

  Which of the following factors are present within the diamond framework?

  Select ALL that apply.

  A. Factor conditions
  B. Demand conditions
  C. Firm strategy, structure and rivalry
  D. Related and supporting industries
  E. Export opportunities
  F. Education resources
  A. Factor conditions
  B. Demand conditions
  C. Firm strategy, structure and rivalry
  D. Related and supporting industries

• Question 45:

  What is the main use of the Thomas-Kilmann Conflict Mode Instrument?

  A. It is a framework for assessing the causes of conflict in an organisation.
  B. It is a framework for assessing the symptoms of conflict in an organisation.
  C. It is a framework for classifying different ways of handling conflict.
  D. It is a framework for classifying the types of conflict in an organisation.
  C. It is a framework for classifying different ways of handling conflict.

• Question 46:

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

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

• Question 47:

  The Thomas-Kilmann model suggests five conflict handling strategies. Which THREE of the following are part of the model?

  A. Competing: both parties seek to maximise their own interests and goals thus creating winners and losers.
  B. Conflict reduction: involves building on areas of agreement and changing attitudes and perceptions by use of compromises and concessions.
  C. Collaborating: involves a 'win-win' strategy which is achieved through joint confrontation of the problem.
  D. Conflict suppression: involves threatened authority or force or smoothing over the conflict by de-emphasing the seriousness of the situation.
  E. Accommodation: involves a strategy in which one party puts the other party's interest first even when it is to its own disadvantage.
  A. Competing: both parties seek to maximise their own interests and goals thus creating winners and losers.
  C. Collaborating: involves a 'win-win' strategy which is achieved through joint confrontation of the problem.
  E. Accommodation: involves a strategy in which one party puts the other party's interest first even when it is to its own disadvantage.

• Question 48:

  KK manufactures mobile phones and it possesses an inimitable resource in the mobile phone market in which it currently competes. Which of the following best describes this type of resource?

  A. It will provide wide access to a variety of markets
  B. A competitor will see the perceived benefits
  C. A competitor will find it difficult to copy
  D. A competitor could substitute the resource
  C. A competitor will find it difficult to copy

• Question 49:

  Z is an entrepreneur that has just bought a chain of 10 prestigious restaurants. Z has decided that there is an urgent need for cost savings and plans to install state-of-the-art computer systems to make each restaurant more efficient and less dependent on manual processes. This means that every employee must be trained to operate the new systems and there will be changes in roles and responsibilities.

  Z has decided to use the biggest restaurant as a training centre, where the new systems will first be installed. Staff from the other restaurants will then train at the biggest restaurant for a week while new systems are installed at their own restaurant. Z has told the staff that no one will be dismissed because of the changes. The planned opening of a new restaurant will absorb any employees displaced due to the efficiency of the new systems.

  Z is concerned about staff resistance. Which approach will be most effective in these circumstances?

  A. Educate employees and communicate with them regularly and openly about the changes.
  B. Confirm to the employees in writing that they will still have a job somewhere after training.
  C. Encourage the employees to discuss all their concerns with their co-workers.
  D. Tell the employees that the new technology is the best way to improve the competitive position of the business.
  A. Educate employees and communicate with them regularly and openly about the changes.

• Question 50:

  A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).

  Which THREE of the following are drawbacks of an SSC?

  A. Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.
  B. The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.
  C. It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.
  D. Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.
  E. Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.
  A. Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.
  C. It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.
  D. Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.