Q1- Multiple Choice Questions

Question 1

Which one of the following skills areas is NOT highlighted by CIMA as being integral to the accountant’s remit?
A. Digital skills
B. Business skills
C. People skills
D. Research skills

Answer 1

D. Research skills

Question 2

According to Mintzberg, the part of the formal planning process or rational strategic plan that was accomplished, was referred to as:
A. Intended strategy
B. Deliberate strategy
C. Emergent strategy
D. Unrealistic strategy

Answer 2

B. Deliberate strategy

Question 3

Which of the following types of environment would a freewheeling opportunism approach for strategic formulation be more likely advantageous?
A. Static
B. Stable
C. Simple
D. Shifting

Answer 3

D. Shifting

Question 4

Which statement is TRUE for the role of the operational level within an organisation?
A. Concerns itself with the ‘whole’ organisation as a unit
B. Focuses on the direction and scope of the organisation over the long term
C. Primarily concerned with the delivery of products and services
D. Reports directly to the corporate level

Answer 4

C. Primarily concerned with the delivery of products and services

Question 5

Which of the following strategies according to Ansoff’s product/market growth matrix would include pursuing growth through the introduction of a loyalty scheme for current customers buying existing products?
A. Market penetration
B. Market development
C. Product development
D. Diversification

Answer 5

A. Market penetration

Question 6

Which is more likely to be part of the unfreezing stage of Kurt Lewis’s 3-stage approach to planned change theory?
A. Adopting a new culture
B. Communicating reasons for change
C. Reward and praise for conformists to new process
D. Communicating successes arising from new processes

Answer 6

B. Communicating reasons for change

Question 7

Which is NOT a word within the PESTEL acronym:
A. Environmental
B. Social
C. Ethical
D. Legal

Answer 7

C. Ethical

Question 8

Which is NOT a type of power, according to French and Raven:
A. Expert power
B. Economic power
C. Reward power
D. Legitimate power

Answer 8

B. Economic power

Question 9

Which is NOT considered an element of effective delegation:
A. Define limits of authority
B. Allow the work to be carried out free from interference
C. Set stringent performance targets
D. Ensure tasks can be carried out by someone with the necessary skills

Answer 9

C. Set stringent performance targets

Question 10

According to Handy’s organisational cultures which of the following would best categorise an informal, owner/manager led small organisation?
A. Role culture
B. Task culture
C. Power culture
D. Person culture

Answer 10

C. Power culture

Question 11

According to french and raven, if a member of staff undertakes a task for their manager because they have respect for them this would indicate which of the following?
1. Expert power
2. Legitimate power
3. Referent power
4. Coercive power

Answer 11

Referent power

Question 12

Which of the following is not a benefit of delegation?
1. Workloads are spread between individuals
2. Takes time to explain new tasks
3. People are exposed to a variety of tasks
4. Allows employee development

Answer 12

Takes time to explain new tasks

Question 13

Which of the following best describes a finance unit organised as a shared service centre (SSC)?
1. The finance function is carried out by an external party
2. A consolidated unit, run centrally within the organisation
3. A dedicated finance function within each unit
4. Professional advisors providing finance and legal services

Answer 13

Professional advisors providing finance and legal services

Question 14

Decisions about acquisitions and mergers occur at which one of the following levels of strategy?
1. Operational level
2. Business level
3. Corporate level
4. Functional level

Answer 14

Corporate level

Question 15

Which one of the following would NOT be considered a strategy to support market development according to Ansoffs matrix
1. Identifying alternative uses for existing products
2. Exploring new geographical market segments
3. Increased advertising and special loyalty offers
4. Identifying new sales channels

Answer 15

Increasing advertising and special loyalty offers

Question 16

According to Mitzberg’s Model, emergent strategy is…
1. The elements of strategy that are unsuccessfully implemented
2. The way a strategy might change and develop in response to environmental changes
3. The short term strategy of the organisation
4. The final chosen strategy of an organisation

Answer 16

The way a strategy might change and develop in response to environmental changes

Question 17

There are a number of reasons behind the developing role of the accountant, one of them being technological advancements.

Which of the following developments in technology has had an impact on the role and responsibility of the accountant:
1. Increase volume of data to build into analysis
2. Faster communication and reporting methods
3. Increased automation of accounting systems
4. All of the above

Answer 17

All of the above

Question 18

According to Hardy, the cultural type typified by teamwork, flexibility and commitment is known as what?
1. Power culture
2. Task culture
3. Role culture
4. Person culture

Answer 18

Task culture

Question 19

According to Lewin, which of the following activities would be most likely related to the refreezing stage?
1. Creating a sense of urgency
2. Reward
3. Monitoring and feedback
4. Positive reinforcement and praise

Answer 19

2, 3, and 5

Question 20

Kotter and Schlesinger give four reasons for resisting change, which of the following is not one of their reasons?
1. Misaligned values
2. Different assessment of need
3. Low tolerance for change
4. Misunderstanding

Answer 20

Misaligned values

Question 21

Which 3 of the following are recognised steps in the rational approach to strategy:
A. Corporate appraisal
B. Brainstorming
C. Strategy evaluation and choice
D. Review and control
E. Short range planning

Answer 21

A, C, D

Question 22

Which of the following is not a characteristic of freewheeling opportunism?
1. Strategy is developed by gradual alteration of the course of action
2. Rejects the formulation of long term planning
3. Can involve bold and high risk decisions being made quickly
4. Supports conditions of high uncertainty

Answer 22

A. Strategy is developed by gradual alteration to the course of action

Question 23

Lewins three stage approach to managing the change process does not include which:
A. Unfreeze
B. Change behaviours
C. Refreeze
D. Reinforce

Answer 23

D. Reinforce

Question 24

ABC sells motor cars has recently discovered that the government is planning substantial investment to overhaul the public transport system. This will significantly increase speed and comfort of the system, and reduce passenger costs.

Under which heading of Porters five forces model would this issue be included
A. Threat of substitutes
B. Power of suppliers
C. Competitive rivalry
D. Threat of new entrants (barriers to entry)

Answer 24

A. Threat of substitutes

Question 25

Which one of Michael porters generic competitive strategies is based on providing products/services that command a superior price due to a unique characteristic? A. Cost leadership B. Cost focus C. Differentiation D. Consolidation

Answer 25

C. Differentiation

Question 26

According to Kotter and Schlesinger which one of the following would more likely be an advantage of using participation and involvement as methods of overcoming resistance to change? A. The quickest method to achieve the required change B. Provides good opportunity for those affected to influence the change C. Provides support for adjustment problems D. Successful in a crisis or urgent situation

Answer 26

B. Provides good opportunity for those affected to influence the change

Question 27

According to French and raven which source of power is derived from holding a designated role in the organisation A. Referent B. Expert C. Legitimate D. Coercive

Answer 27

C. Legitimate

Question 28

According to handy the cultural type identified by teamwork, flexibility and commitment is known as A. Task culture B. Role culture C. Power culture D. Person culture

Answer 28

A. Task culture

Question 29

What does the phrase ‘think global, act global’ mean for organisations competing in a globally market A. Take something that works well in another country and apply it, with no changes, to the community that is being served B. Adapt products or services to be accepted in a variety of local communities around a region or around the world C. Look for factors that determine national competitive advantage D. Translate all messages into multiple languages

Answer 29

B. Adapt products or services to be accepted in a variety of local communities around a region or around the world

Question 30

Which of the following is seen as a disadvantage of having strong organisational culture A. String cultures may regulate behaviour within the organisation B. May reduce differences between members of the organisation C. May restrict the organisations ability to learn new skills D. Strong cultures may facilitate good communication and coordinations within the organisation

Answer 30

C. May restrict the organisations ability to learn new skills

Question 31

Developing commercial know how to analyse an organisations environment and aid strategic planning is vital under which ares or CIMAs competency farmework A. Leadership skills B. Digital skills C. Business skills D. People skills

Answer 31

C. Business skills

Question 32

Strategy takes place at a variety of levels within the organisation. J company is currently reviewing its control systems and you are required to advise the project team on the appropriate level of strategy at which the setting of the divisional annual budgets should take place A. Business level B. Corporate level C. Operational level D. Functional level

Answer 32

A. Business level

Question 33

Which is the least likely to explain a drawback of using the rational planning process for strategic formulation A. Inflexible and bureaucratic B. Does not thrive in uncertain environments C. Stifles new opportunities and innovation D. Does not thrive in stable environments

Answer 33

D. Does not thrive in stable environments

Question 34

Which of the following is not a characteristic of the freewheeling opportunism approach for strategic formulation A. An informal approach to strategic development B. Often involves bold and high risk decisions C. Strategy is developed through gradual alteration to the course of action D. Supports conditions of a fast paced environment

Answer 34

C. Strategy is developed through gradual alteration to the course of action

Question 35

In mintzbergs model of emergent strategy what is meant by intended strategy A. The elements of the planned strategy that the company actually follows B. The original course of action a company purposed to pursue C. The element of strategy that have arisen through reacting to changes in the environment D. The strategic path that the company ends up taking

Answer 35

B. The original course of action a company purposed to pursue

Question 36

The influence an organisation will normally have over its macro environment will be A. Limited or non existent B. High C. Moderate D. Continual

Answer 36

A. Limited or non existent

Question 37

Which is not a purpose of external analysis A. Allows information to be gathered to support the generation of strategic options B. Helps the organisation to identify strengths and weaknesses C. Helps to identify triggers for change D. Helps in the production of financial forecasts

Answer 37

B. Helps the organisation to identify strengths and weaknesses

Question 38

According to porters five force model what is meant by the term substitute A. A substitute rival from offering the same products B. A substitute is an alternative product or service that performs the same function for the consumer C. A substitute refers to an alternative manufacturing process D. A substitute is something else consumers would rather spend their money on

Answer 38

B. A substitute is an alternative product or service that performs the same function for the consumer

Question 39

TBA airline has an excellent reputation and brand image. This is achieved through investing in staff training and development to ensure customers receive a high level of service. Where in the value chain is TBA airline adding value? A. Technology development, market and sales, outbound logistics B. Marketing and sales, Human Resource management, outbound logistics C. Firm infrastructure, Human Resources management, marketing and sales D. Human resource management, marketing and sales, service

Answer 39

D. Human resource management, marketing and sales, service

Question 40

AAB car company CEO wants to understand the key challenges it currently faces and has presented the following information about the car industry. Which is classed as social factor in PESTEL model: A. Increasing regulation regarding emissions target B. Increasing interest in smaller, more environmentally friendly compact models C. Advancements in development of electric fuel cell technology D. Complexity of tariff system for international trade

Answer 40

B. Increasing interest in smaller, more environmentally friendly compact models

Question 41

A wholesale retailer uses a competitive strategy of out of town locations and cheap unbranded products sold in store, in order to reduce overhead. To shop there customers must have a trade membership with an approved organisation. The competitive strategy followed by this organisation is? A. Cost leadership B. Cost focus C. Differentiation D. Differentiation focus

Answer 41

B. Cost focus

Question 42

An organisation that seeks to maintain or increase its market share in an existing market with and existing product is an example of one of the following strategy’s: A. Market development B. Product development C. Diversification D. Market penetration

Answer 42

D. Market penetration

Question 43

Which is more likely true when referring to competitive advantage? A. It stems only from the rational planning model B. It focuses on key internal resources for achieving sucess C. It looks for ways the organisation can outperform rivals or the industry average D. It focuses on exploiting external opportunities

Answer 43

C. It looks for ways the organisation can outperform rivals or the industry average