CIMA CIMAPRO15-E03-X1-ENG Exam : E3 - Strategic Management Question Tutorial

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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Liquidation
B) Turnaround
C) Facilitation
D) Retrenchment
E) Divestment

3. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams play minor roles in institutional change.
B) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
C) Teams that cross departmental boundaries can destroy shared values.
D) Teams should continue after their purpose has been served.
E) Teams that cross departmental boundaries can develop new performance criteria.
F) Teams enhance learning and address change directly through creating recommendations and new ideas.

4. ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states "Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times." Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

A) Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.
B) Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.
C) Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.
D) Set performance targets in diversity and equality for its hotel senior managers.
E) Operate a system of reward incentives for staff who display high ethical and professional standards.
F) Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.

5. 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 be responsible for keeping all external stakeholders satisfied.
B) To consider the likely consequences of any decision in the long term.
C) To focus only on maximizing company profits.
D) To avoid conflicts of interest and of duties.
E) To have regard for the interests of the company's employees.

Solutions: