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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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 focus only on maximizing company profits.
C) To avoid conflicts of interest and of duties.
D) To consider the likely consequences of any decision in the long term.
E) To be responsible for keeping all external stakeholders satisfied.

2. Information Systems (IS) strategy is correctly defined as:

A) The planning, organizing, investment and control of information applications in the organization.
B) Identifying the information needs of the organization and aligning development to them.
C) The roles and structure of information specialists in the organization and their relationship with users.
D) Decisions on the hardware, software and communications solutions used in the organization.

3. DRAG DROP
AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:
Select and Place:

Correct

4. 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) 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.
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) A company's Code of Business Conduct can be rules based.
D) 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.
E) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

5. Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)

A) Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
B) Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
C) Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.
D) Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.
E) Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.

Solutions: