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CIMA Managing Finance in a Digital World Sample Questions:

1. Porter's Value Chain was developed to determine whether a firm's activities contribute towards it's competitive advantage. E is the new Chief Executive of an organisation which manufactures and distributes hand made wooden furniture. His initial observations are that sometimes the workflow through the organisation can be a little disjointed and it is unclear from overall results which areas contribute to profit and quality and which do not. Using Porter's Value Chain model, identify which THREE of the options below are Primary activities.

A) Human resource management
B) Procurement
C) Operations
D) Inbound logistics
E) Marketing and sales
F) Technology

2. Mitch owns a small furniture business, which he is keen to grow.
Which of the following would MOST benefit the growth of Mitch's business:

A) Becoming a network organisation.
B) Forming an alliance with a local supplier.
C) Becoming a shamrock organisation.
D) Outsourcing all complementary and residual competencies.
E) Reducing the price of all products by a third.

3. JKL is an online marketing agency and is currently developing its systems to improve efficiency in storing and retrieving data P works in the finance function and is currently assisting the development of a technical map of rules and data structures to enable the data to be stored effectively in JKL's new databases.
At what level of the data modelling process is P working on?

A) Logical
B) Visual
C) Physical
D) Conceptual

4. Level one of the contemporary shape of the finance function involves strategic leadership of the finance team.
The head of the finance function is.

A) The Chief Financial Officer
B) The Financial Accountant
C) The Chief Executive Officer
D) The Finance Treasurer

5. Cloud computing is a growing IT strategy In which THREE of the following situations would this be a sensible IT strategy?

A) High in-house IT skills
B) Bespoke software
C) High impact if data is lost
D) Need to reduce up front costs
E) Unreliable internet access
F) Frequent software changes

Solutions: