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CIMA E1 Dumps

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Managing Finance in a Digital World
Last Update: Apr 9, 2024
336 Questions with Explanation
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Managing Finance in a Digital World Practice Questions

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Managing Finance in a Digital World Questions and Answers

Questions 1

The Finance Director has been asked to produce a cost saving plan for the organisation which is to come into effect immediately. His initial suggestion to enable quick savings is to cut the staff development and training budget by 50%. Before he publishes the plan he has asked you to review it and let him know what the effect of this may be in the short term.


Select ALL that apply. 



Key staff may leave


Staff skill levels may reduce


There may be a  loss of competitive advantage


Profit will increase


Recruitment may be more difficult


Staff motivation may reduce

Questions 2

AB Company is considering a recruitment campaign to provide extra senior marketing staff for a new product launch. AB produces specialist industrial cleaning products and has a well developed marketing function. Which of the following will be an effective alternative to a recruitment campaign?



Promotion of existing staff in the department


Secondment of staff from other departments


Use of agency staff


Job rotation within the organisation

Questions 3

Company M has been dealing with Supplier Q for many years. The Procurement Department has a very professional relationship with the supplier and it has recently started using electronic data interchange to place orders directly and on a much more frequent basis to assist production. A large part of the interaction with the supplier is now around price negotiation. According to Reck and Long's strategic positioning tool, which stage is Company M at with Supplier Q?



Independent stage


Passive stage


Supportive stage


Integrative stage