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CIMA Managing Finance in a Digital World Sample Questions:

1. Which of the following describes a disadvantage of succession planning?

A) It can be cheaper than advertising.
B) It motivates employees as rewards are visible.
C) It develops career structures.
D) Planning requires resources to manage it.

2. An effective induction programme will typically focus on which THREE of the following?

A) Culture and values, including ethical issues
B) Financial issues including salary payment dates and expense procedures
C) Hobbies and interests
D) Organisation structure, charts and reporting lines
E) Personal health issues
F) Family connections with the business

3. Which of the following is an advantage of outsourcing?

A) Continuity is guaranteed
B) Cost savings may be made
C) Data confidentiality is stengthened
D) Core competence may be strengthened

4. Which of the following statements best describes quantitative information?

A) Information that is difficult to record and process.
B) Information that is derived from case studies.
C) Information that is often in the form of opinions
D) Information that comes from data normally expressed as numbers.

5. Which of the following is a reason why businesses need to prepare statutory reports?

A) To inform the investors how profitable the business is.
B) To ensure they have enough inventory on hand for production.
C) To decide on their foreign exchange hedging policy.
D) To help compare budget with actual performance.

Solutions: