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CIMA E2 Exam
Managing Performance (Page 4 )

Updated On: 26-Jan-2026
Page 4 of 43
PDF with 210 Questions

Which of the following statements relating to disciplinary sanctions should not be true?

Select ALL that apply.

  1. Disciplinary action follows breaking of clearly laid out known rules
  2. Sanctions stop behaviour quickly
  3. Every disciplinary case is treated differently depending on the situation
  4. The "act" is the focus not the person
  5. Sanctions always begin with a format written warning
  6. The disciplinary process is often endorsed by trade unions

Answer(s): C,E



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.

  1. Factor conditions
  2. Demand conditions
  3. Firm strategy, structure and rivalry
  4. Related and supporting industries
  5. Export opportunities
  6. Education resources

Answer(s): A,B,C,D



What event occurs between the second and third stages of Gido and Clement's Project Life Cycle?

  1. An agreement to proceed with the project is made
  2. A request for a proposal is made
  3. Several solutions are proposed
  4. The identification that there is a need a project
  5. A feasibility study is undertaken
  6. Project objectives are identified

Answer(s): A



An organisation manufacturing cosmetics was set up five years ago and has since grown considerably.

The organisation did not have clear strategies and as such any approaches emerged. The directors feel a new way to strategy setting would be more appropriate; one that could offer a more thorough, intended, deliberate approach.

Which of the following is a suitable approach to developing strategy for this organisation?

  1. Rational Strategy
  2. Resource based strategy
  3. Emergent strategy
  4. Shareholder strategy

Answer(s): A



Porter's Value Chain model is divided into two main categories. From the choices below identify the TWO categories:

  1. Operational activities
  2. Marketing and Sales activities
  3. Primary Activities
  4. Procurement Activities
  5. Support Activities
  6. Outbound logistics

Answer(s): C,E



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