cima cimapra19 e03 1 practice test

Organizations have a variety of stakeholders, each with differing interests and requirements. This can
lead to stakeholder conflict. This can be further complicated when individuals are members of more
than one stakeholder group and when members of one group do not share the same principal
interest.
Company FF has decided that it needs to undertake a stakeholder analysis in order to manage its
stakeholders more effectively.
Which of the following statements are valid when undertaking stakeholder analysis?
Select ALL that apply.

• A. Establishes stakeholder interests and claims on the Organization.
• B. The analysis enables priorities to be set to minimize power clashes.
• C. Considers how to prevent stakeholder trouble before it starts.
• D. Determines the degree of power that each group holds.
• E. The analysis only focuses on quantitative matters.

Which THREE principles are explicitly named in the CIMA Ethical Code for Management Accountants
Part A?

• A. Objectivity
• B. Professional Competence and Due Care
• C. Integrity
• D. Privacy of Information
• E. Correct Personal Behavior

D is a Project Manager. D has just left a meeting with the Executive Team of his Organization. D is
delighted that the Executive Team has given support to D's proposal to implement a knowledge
management system in the Organization.

What should be the next activity that D undertakes in this project?

• A. Create a technological infrastructure of hardware and software.
• B. Create database structures to store and reference knowledge.
• C. Gain the commitment of senior management to the project.
• D. Populate the knowledge management system with knowledge.

Company MM is wanting to build an out of town shopping complex. This will be located near a busy
road which is surrounded by housing estates. MM has yet to obtain planning permission. It
recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity
Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?

• A. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.
• B. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.
• C. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.
• D. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.

According to Johnson, Scholes and Whittington, Suitability is an important consideration when
evaluating potential alternative investment strategies.

Which of the following is a Suitability consideration?

• A. There are limited raw materials available.
• B. Finances are available.
• C. Current markets are not saturated.
• D. Staff will be resistant to change.

Which of the following is NOT a use of the Value Chain?

• A. Give managers a deeper understanding of precisely what their Organization does.
• B. Implement changes to protect key processes.
• C. Identify the key processes within the business that add value to the end customer.
• D. Identify the non-value added processes.

GGG is currently undertaking a process of intuitive forecasting. A team of ten people has
been selected from all levels of management and from a range of functional departments, to take
part in the process. An initial single question of 'How do we improve future customer satisfaction
levels for GGG?' has been posed and all members of the team have been asked to present a
suggestion. No one is allowed to criticise another person's ideas. This process should give GGG a
forum for the expression and discussion of a wide range of ideas.

Which of the following intuitive forecasting techniques is GGG undertaking?

• A. The Delphi technique
• B. A think tank
• C. Brainstorming
• D. Visioning

CCC has been given permission by the local government authority to build 500 houses and this will
be a very profitable project for CCC. An animal charity is opposed to the building of the houses as
fields where animals live will be built on.  Some people living nearest to the area of the proposed
building are in favour because it will stimulate the local economy. Other people living near the area
of the proposed development are opposed to it because their view will be spoiled. Which of the
following activities should CCC undertake to resolve the stakeholders' competing objectives?

• A. CCC should focus on its stakeholders' needs in turn.
• B. CCC should give the animal charity the money to establish a wildlife sanctuary.
• C. CCC should conduct discussions with its stakeholders and reach an acceptable compromise.
• D. CCC should conduct a PESTLE analysis.

FFF manufactures and sells three consumer products. The Marketing Manager has enough funds to
commission an advertising campaign for only ONE of the three products.

The Marketing Manager's criterion for allocating funds for an advertising campaign is that the
product should be a "Star" according to the BCG matrix.

Which product should receive the investment?

• A. Product A
• B. Product B
• C. Product C
• D. None of the three products meet the criterion.

GGG is a manufacturer of four different components produced in four separate facilities. The
Production Director has sufficient funds to modernise one of the facilities.  GGG's decision rule in
these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog'
or a 'Problem Child?'. Which facility should be modernised?

• A. Facility A produces a component with a relative market share of 1:5. Its current market growth rate is 4.5%.
• B. Facility B produces a component with a relative market share of 1:4. Its current market growth rate is 9%.
• C. Facility C produces a component with a relative market share of 3:1. Its current market growth rate is 11%.
• D. Facility D produces a component with a relative market share of 1:6. Its current market growth rate is 10%.