CIMA E2 Dumps - Project and Relationship Management PDF Sample Questions

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Project and Relationship Management
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Last Update Date : 04 July, 2024
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Realexamdumps Providing most updated CIMA Advanced Diploma In Management Accounting Question Answers. Here are a few exams:

Sample Questions

Realexamdumps Providing most updated CIMA Advanced Diploma In Management Accounting Question Answers. Here are a few sample questions:

CIMA E2 Sample Question 1

The initial Balanced Scorecard design, defined by Kaplan and Norton, used four perspectives (or legs) for management control and the implementation of strategy. What are the FOUR original perspectives?


A. Learning and growth
B. Internal business
C. External issues
D. Competitors
E. Financial
F. Customer

Answer: A, B, E, G

CIMA E2 Sample Question 2

An organisation facing difficult business conditions as a result of strong competition is aware of the need to improve its performance in bringing new products to market.


The director is aware of conflicting problems the organisation faces in its approach to new product development between the marketing department and the research and development department.


Which term best describes this type of conflict?


A. Vertical
B. Constructive
C. Destructive
D. Horizontal

Answer: E

CIMA E2 Sample Question 3

Which of the following best describes the resource based view of strategy?


A. Carrying out a SWOT analysis to set strategy.
B. Recognising that competitive advantage stems from some unique asset or competence possessed by the organisation.
C. Recognising competitive advantage stems from scanning the environment.
D. Setting a strategy by creating the conditions for new ideas to flourish.

Answer: C

CIMA E2 Sample Question 4

Identify ways in which an orgnisation can undertake qualitative research.


Select ALL that apply.


A. Conducting a focus group
B. Carrying out observations
C. Calculating ratios on sales data
D. Carrying out interviews
E. Studying organisations operating statements

Answer: A, B, E

CIMA E2 Sample Question 5

Performance appraisal systems are designed to meet a number of objectives. Which of the following is a positive objective of such a system?


A. To motivate individuals by providing an opportunity for feedback and an opportunity for a staff member to discuss any issues.
B. Managers have a reluctance to give the highest or lowest grades, so end up giving all members of staff an average grading.
C. Timing of appraisals can lead to problems for management as it tries to schedule a number of performance appraisals within a short time frame.
D. If the scheme does not have top level buy in, it will be unlikely to succeed and may become a box ticking exercise.

Answer: B

CIMA E2 Sample Question 6

An employee of a company has been asked to explain the difference between a Grievance and Disciplinary Action. The employee knows the definitions of both and, whilst they have two examples of actions which would result in Disciplinary Action, they can only think of one circumstance which may result in a Grievance, and this is Discrimination.


Which of the following could the employee use as an additional example of a Grievance? 


A. The employee is regularly absent.
B. The employee feels that they have not been considered for promotion because of their age.
C. The employee entered a restricted area.
D. The employee feels that they have been given an unfair appraisal.

Answer: E

CIMA E2 Sample Question 7

Many public companies remain committed to the rational approach to strategic decision making believing that the long term advantages outweigh the disadvantages.


Which TWO of the following factors are considered to be advantages of the rational approach?


A. Less time consuming and less expensive
B. Fosters an entrepreneurial spirit
C. Aids target setting and controls
D. Stakeholder confidence is enhanced

Answer: C, E

CIMA E2 Sample Question 8

Identify THREE advantages of a matrix organisation structure for the execution of significant business projects:


A. Combines functional knowledge with project accountability
B. Provides flexibility in terms of meeting concurrent priorities
C. Enables staff to focus on a single professional commitment
D. Involves staff answering to more than one supervisor or line manager
E. Fosters interdisciplinary co-operation in pursuit of project goals

Answer: A, B, F

CIMA E2 Sample Question 9

Which of the following statements relating to disciplinary sanctions should not be true?

Select ALL that apply.


A. Disciplinary action follows breaking of clearly laid out known rules
B. Sanctions stop behaviour quickly
C. Every disciplinary case is treated differently depending on the situation
D. The "act" is the focus not the person
E. Sanctions always begin with a format written warning
F. The disciplinary process is often endorsed by trade unions

Answer: C, F

CIMA E2 Sample Question 10

According to Mintzberg, a manager must exhibit which of the following skills in order to create the conditions for new ideas to flourish and strategies to emerge?


Select ALL that apply.


A. Manage stability
B. Detect discontinuity
C. Keep decisions small
D. Detect conflict
E. Manage patterns
F. Reconcile change and continuity

Answer: A, B, E, G

CIMA E2 Sample Question 11

A company is considering introducing a new product into the market but has been advised to undertake some qualitative research prior to doing this. The marketing manager is uncertain as to what information it will get from this type of research.


Which of the following can be identified by carrying out qualitative research?    


A. The reason why a customer might buy a certain brand.
B. The number of customer complaints received in a given period.
C. The sales value of a product for a given period.
D. The profitability of a competitor.

Answer: B

CIMA E2 Sample Question 12

X is a manufacturing company that has achieved long term success by understanding the structure of its industry, and where necessary changing its strategy in order to achieve improved performance by outperforming its competitors.


Success has depended on the company exploiting the underlying economic factors (such as economies of scale) better than its competitors and maintaining this over time, so achieving sustainable competitive advantage.


Researchers would call this an "outside-in" approach to strategy, with the company choosing a strategy that responds to the challenges and changes posed by the external environment.


Which type of strategy is X adopting?


A. Positioning approach
B. Resource-based view
C. Emergent strategy development
D. Logical incrementalism

Answer: B

CIMA E2 Sample Question 13

Q has been appointed as the Commercial Director of a medium-sized publishing company that is facing strong competitive pressures in difficult trading conditions. Q is surprised to find that the firm is pursuing the formal/rational approach to strategy development.


Q is now preparing a presentation to the Board to change the basis of strategy development to an emergent approach.


Which THREE arguments could Q use in the presentation?


A. The rational approach takes up significant organisational resources, can be very expensive, time consuming and complicated.
B. The rational process can end up as a bureaucratic, top-down process focusing on plans, systems and targets, leading to a loss of entrepreneurial spirit.
C. Given an uncertain business environment, it is impossible for rational strategy makers to make reliable assumptions about the future.
D. An emergent approach encourages managers to take a longer term view of the development of the business, rather than being short-term and reactive.
E. From a stakeholder perspective, the emergent approach could be viewed as demonstrating that the organisation has a very clear sense of where it is going.

Answer: A, B, D

CIMA E2 Sample Question 14

FF Ltd was established three years ago. Since then the company, which provides online financial advice, has experienced rapid growth and the management team has not really had the time to put management systems and procedures into place.


The organisation has asked you to look at the way in which the company deals with its disciplinary problems and procedures.


Choose from the following ALL that apply as recommended guidelines for drawing up a disciplinary procedure:


A. Procedures should be written down to avoid misunderstandings.
B. Staff should be provided with a copy of the procedures and relevant sections of the policy made clear.
C. Discipline is all about punishment and it should state this in the policy document.
D. Disciplinary procedures should consist of having informal chats outside of the organisation.
E. Steps should be detailed to investigate complaints that might lead to legal action.
F. Appeals procedures should be given as and when required as a last resort.

Answer: A, B, F

CIMA E2 Sample Question 15

The PRINCE2 project management methodology has consistent principles governing roles, plans, processes and risks. Which TWO of the following statements are correct?


A. Team plans are mandatory within PRINCE2.
B. A PRINCE2 organisation is a technical project team, assembled to achieve an unspecified objective.
C. A project issue is any factor which could have an effect on the project (either detrimental or beneficial).
D. One of the objectives of the process "Initiating a Project" is to define how the required product quality will be achieved.

Answer: C, E

CIMA E2 Sample Question 16

After undertaking competitive analysis, a company has assembled the information and is now in a position to benchmark its performance against that of its competitor. A manager has been asked to carry out strategic benchmarking, but he is unsure of what information he should use.


Which TWO of the options below could be used to undertake Strategic Benchmarking?


A. % Market Share
B. % return on Non Current Assets
C. % late deliveries
D. % sales returns

Answer: A, C

CIMA E2 Sample Question 17

Z is an entrepreneur that has just bought a chain of 10 prestigious restaurants. Z has decided that there is an urgent need for cost savings and plans to install state-of-the-art computer systems to make each restaurant more efficient and less dependent on manual processes. This means that every employee must be trained to operate the new systems and there will be changes in roles and responsibilities.


Z has decided to use the biggest restaurant as a training centre, where the new systems will first be installed. Staff from the other restaurants will then train at the biggest restaurant for a week while new systems are installed at their own restaurant.  Z has told the staff that no one will be dismissed because of the changes. The planned opening of a new restaurant will absorb any employees displaced due to the efficiency of the new systems.


Z is concerned about staff resistance. Which approach will be most effective in these circumstances?


A. Educate employees and communicate with them regularly and openly about the changes.
B. Confirm to the employees in writing that they will still have a job somewhere after training.
C. Encourage the employees to discuss all their concerns with their co-workers.
D. Tell the employees that the new technology is the best way to improve the competitive position of the business.

Answer: B

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