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CIMA Managing Finance in a Digital World Sample Questions:

1. Which TWO of the following relate to corporate social responsibility (CSR) rather than corporate governance?

A) Eliminating discrimination in company advertising
B) Strong accountability through a board of directors
C) Achievment of high levels of degradable packaging
D) Independently determined remuneration based on clear criteria
E) Safeguarding against decision making being dominated by one person

2. AB Company is currently the sole supplier of raw material to XY Company and has recently increased its prices. This has been highlighted by a raw material price variance in the management reports of XY Company, and in order to correct this the Finance Director has recommended that an alternative cheaper supplier be found as soon as possible. The Purchasing Department has indicated that only AB is able to supply all of the company's requirements and has been doing so reliably to a high quality on a just-in-time (JIT) basis for many years. Finding an alternative will involve purchasing from several unknown suppliers. Which of the following are possible consequences of this decision?
Select ALL that apply.

A) Speed of production will increase
B) Administration costs will decrease
C) Product profitability will increase
D) Quality will decrease
E) Inventory levels will increase
F) Manufacturing costs will decrease

3. Which of the following are measures a business might introduce specifically as part of its Corporate Social Responsibility (CSR) strategy?
Select ALL that apply.

A) Negotiating with a supplier to keep costs to a minimum
B) Reducing the range of different products it makes
C) Commissioning a report on carbon dioxide (CO2) emissions from its factories
D) Using different waste bins for recycling and non-recycling

4. Company A works closely with its customers, suppliers and other business partners. It securely shares part of its private network with this group of stakeholders Which of the following best describes the type of network that Company A operates?

A) An extranet
B) A database
C) An intranet
D) An internet

5. Which of the following is a potential advantage of outsourcing?

A) Reduced core competencies
B) Finality of decision
C) Reduced transaction costs
D) Reduced capital expenditure

Solutions: