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CIMA E1 Exam Questions
Managing Finance in a Digital World (Page 6 )

Updated On: 27-Feb-2026
Page 6 of 60
PDF with 295 Questions

Which of the following are advantages of a virtual team?
Select ALL that apply.

  1. The costs of a central office are not needed.
  2. New members can be brought in and out of the team easily.
  3. Members do not feel isolated.
  4. It is easier to establish decision making processes.

Answer(s): A,B



Dismissal is a drastic form of disciplinary action. Which THREE of the following examples would constitute fair dismissal?

  1. It has been discovered that the Management Accountant embezelled $10,000.
  2. A driver has been convicted of driving whilst under the influence of alcohol and has received a driving ban for 24 months.
  3. The Office Junior was 10 minutes late returning from lunch twice last week.
  4. The Office Manager has announced that she is pregnant.
  5. A senior manager has been passing product information to competitors.
  6. The Sales Manager has requested flexible working hours.

Answer(s): A,B,E



M is employed by an organisation that operates a chain of high street coffee shops. She has made a decision to purchase a failing cake shop in order to take it over and expand the presence of the organisation in the local area. According to Mintzberg, which part of the organisation does M belong to?

  1. Strategic apex
  2. Techno-structure
  3. Middle line
  4. Operating core

Answer(s): A



One of the key corporate governance factors within an organisation is that of responsible planning and management of resources. This is often referred to as stewardship. Whilst this is the responsibility of all directors, financial resources are overseen by the financial director. The finance department, under the direction of the financial director, issues weekly staff performance reports to line managers and department heads, annual statistical information to local government departments and quarterly high level results statements to shareholders. Why is stewardship such an important responsibility of company directors and the finance function?

  1. It is the interest of all stakeholders
  2. It is the interest of all shareholders
  3. It is the interest of the government
  4. It is the interest of the employees

Answer(s): A



Mita has set up a number of food shops and spends a lot of her time finding suitable staff Her key strength is going to farmers' wholesale markets and selecting her suppliers She also carries out all the accounting functions and maintains the shops by acting as her own caretaker, carrying out repairs and maintenance at the weekends

Which aspect of the work would Mita be LEAST LIKELY to outsource?

  1. Sourcing the suppliers
  2. Human resources
  3. Repairs and maintenance
  4. Accounting

Answer(s): A






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