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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
B) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
C) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
D) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
E) A company's Code of Business Conduct can be rules based.

2. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The right-hand side of the pyramid contains measures which are predominantly non-financial.
B) The performance pyramid is designed to ensure that all activities support the organization's vision.
C) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
D) The left-hand side of the pyramid contains measures which have an external focus.
E) The business operating systems level includes the market-related Critical Success Factors.
F) The lowest level of the pyramid contains the day-to-day operational measures.

3. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To have regard for the interests of the company's employees.
B) To consider the likely consequences of any decision in the long term.
C) To focus only on maximizing company profits.
D) To avoid conflicts of interest and of duties.
E) To be responsible for keeping all external stakeholders satisfied.

4. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Environmental awareness
B) Imagination to innovate
C) Openness to collaborate
D) Sophisticated systems
E) Continual service development

5. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Revolution
B) Reconstruction
C) Adaptation
D) Evolution

Solutions: