E1 Sample Questions Answers

'A mam stakeholder of the finance function typically enquires about the prospects of the business, alongside overall performance and feedback on the leadership team'

Which of the following stakeholders is being discussed?'

Which of the following are advantages of a virtual team?  

Select ALL that apply.

A company is expanding its baby clothing product range to include all items for infants, for example feeding and bathing equipment. As this is a new venture for the company, the Board of Directors has agreed that market research is a necessary exercise, but it is undecided as to which is the most efficient and effective method. Which of the following methods of research would be most appropriate?

Company Y is very bureaucratic. The managers attend high numbers of planning meetings and the employees often complain of being micro-managed. According to Hofstede, which dimension is being described within the culture of Company Y?

Which of the following is a possible disadvantage associated with a matrix structure?

AB Company is planning to produce a new product which will require an extra shift to be worked in its factory, and needs to know if the sales expected will cover the extra cost of manufacture. Which of the following financial processes will be used to calculate this?

A is developing a new mission statement. Which TWO of the following should NOT be included?

Inventory control, which maintains a low level of inventory, is important to ensure which of the following?

Company E operates a management consultancy business with four international offices. All offices specialise in helping new businesses, with all support operations dealt with by headquarters.Which of the organisational structures below would best describe Company E.

It can be said that ethics is a set of moral principles underpinning the concept of right and wrong. Whether an action is actually right or wrong depends on which of the following?

Select ALL that apply.

Which of the following sources of data will have limited usefulness to finance professionals?

GBX has been receiving adverse customer feedback regarding late deliveries. As a result, it has decided to review its delivery logistics systems and related performance indicators.

The management team are discussing the introduction of a Key Performance Indicator (KPI) which allows a maximum of three hours to deliver a customer order

Which of the following SMART criteria is unlikely to apply to this KPI?

An electrical goods company produces colourful brochures for customers.

Which element of the marketing mix does this represent?

T is the head of the marketing department in company Z. There have been several new recruits into the department recently and T is introducing them to the marketing mix. T explains that the original marketing mix had only 4 Ps. However, this was focused primarily around the manufacturing industry. The mix was later extended to include an extra 3 Ps for use in the service industry. Which THREE of the following are the extra 3 Ps?

Which of the following best describes a digital mindset?

Which of the following is a feature associated with personnel management rather than the more modern concept of  human resource management?

Lancaster and Withey (2003) identifies five steps in consumer decision making. Which THREE are valid?

AB Company operates a capital intensive production process and cannot quickly add capacity. Which of the following best describes this production strategy?

In a new initiative, Company O has been putting a lot of emphasis on internal awareness of Corporate Social Responsibility and creating value for it's stakeholders. A huge part of this has been about focusing on recycling and making departments accountable.

In order to assist with the achievement of goals in this area, a process has been designed to give some structure to measuring value for each department. Each of the process elements are listed below. Place the steps against each of these to indicate the correct sequence.

Which of the following are the primary objectives of a commercial organisation?

 Select ALL that apply.

Which THREE of the following refer to information sourced externally?

R is a 14 year old girl and has been promised a new computer for her birthday. Her school friends have popular hand-held models which are very intuitive to use with an eye-pleasing interface and design. Her parents want her to have a cumbersome personal computer which has to be situated at home as it will be more secure and easy to upgrade in the future without replacing the whole unit. R would prefer the computer her friends have. Which influence is R demonstrating?

XY Company operates a flexible manufacturing system, manufacturing a single standard product. What is the disadvantage of this system if the organisation expands its product range?

Which one of the following is NOT part of the role of Human Resource Management?

A duplication of support functions would exist under which of the following organisational structures?

There are four approaches to system changeover, each of which varies in terms of risk, cost and time. When there is a need to minimise costs and time the most suitable approach would be:

AcrossThePond is a ferry company that has just slashed their prices for trips scheduled to Europe between August and November - they are now almost half as cheap!

Why would AcrossThePond do this?

Select ALL that apply.

A PESTEL analysis (political, economic, social, technological, ecological and legal) is used by marketing to monitor its macro environment. Select THREE examples of economic factors

TJD is a national retailer of garden accessories and a FTSE 350 company It is currently establishing a remuneration committee

According to the UK Corporate Governance Code what is the minimum number of non-executive directors TJD's remuneration committee should be

made up of?

Company T has eight main products that it markets and sells. One particular product requires a low amount of ongoing investment, has low growth prospects but currently maintains a high market share.

 According to the Boston Consulting Group Matrix, which category is this product in?

Which of the following statements best describes quantitative information?

In preparation for GD Company's annual people resourcing meeting, PR is creating the HR Plan for the Finance Directorate. He is currently collecting information for the second stage of the plan i.e. Internal Analysis.  Which THREE of the following will PR need information about for this stage?

Arrange the stages of the product life-cycle in the correct order.

X Company has several distinctive corporate social responsibility stances including a concentration on the triple bottom line, being proactive, and treating stakeholders as partners. According to Johnson, Whittington and Schools' categorization which of the following stances would best fit X?

Kolb's learning cycle suggests that learning is a series of steps based on learning from experience.

Match the various stages of the cycle with the correct description.

Which of the following is a benefit to the employer of remote working?

Which of the following best describes a virtual team formed by individuals from different companies to achieve a common aim?

Which of the following would specifically be an example of the use of the marketing concept by a charity? 

Different types of organisation exist for different purposes. Match the types of organisation to the appropriate purpose.

It is important to assess the contribution made by the finance function. If a balanced scorecard approach is used, which of the following categories would utilise the measure of staff turnover?

L and M are setting up a business offering guided hiking holidays in national parks throughout the world. The price of the holidays will include airfares and accommodation; their initial research shows that there will be a huge variability in the cost of both.

What type of pricing will be appropriate for their holidays?

La Vie En Rose was the latest perfume from the popular and well known perfumery, Lola. In almost every high quality magazine there was an advert featuring a famous actress and produced by a well known director. A

few weeks after launching, La Vie En Rose became the top selling perfume.

At the same time, another perfume called Amber launched from a smaller company and only appeared in a few advertisements and the perfume doesn't sell well.

In a blind test, where participants tried both Amber and La Vie En Rose, it was found that La Vie En Rose was the most popular choice.

Which orientation did La Vie En Rose use and why was it more successful than the Amber perfume?

Digital interactive marketing does NOT involve the use of which of the following?

Which of the following are types of primary research? Select ALL that apply.

Company P has revised its corporate and marketing objectives following a recent expansion in the primary market within which it operates. The next step is to devise an appropriate marketing strategy. Company P has conducted primary and secondary market research and this information is in the process of being analysed to establish the needs of the subjects. At which stage of the marketing strategy process is Company P?

Which of the following is a cost of information?

Which area of a Finance Manager's job role do the following tasks fit into?

Place the appropriate role against the task.

LFN is a tuition provider

The finance function has recently migrated all accounting systems onto cloud software which is expected to considerably streamline the existing systems.

The Managing Director is keen to promote the benefits of the new software in terms of increased accuracy of reporting and availability of real time management information.

However, the Finance Director has concerns and is feeling pressured to keep quiet about the ability of the technology to achieve all that is expected

Which of the following ethical principles is highlighted within LFN?

Which of the following functions is associated with the operating core of an organisation?

The Statement of Financial Position is NOT normally used to make decisions concerning which of the following?

A new Team Leader in Internal Audit has been asking team members about tasks that they do not think are part of their responsibility as they go beyond compliance with legislation. You are preparing a response to this to include an explanation of the requirements of a social audit. Which of the following would you include in your response?

Select ALL that apply.

T is employed as an HR manager for a chain of hotels. A large part of her role is to assist the HR director with forecasting personnel requirements for the next one, three and six month periods respectively.

Which TWO of the following factors should be taken into consideration when forecasting personnel requirements?

Organisation X is 6 months into an overhaul in its supply chain management and production process.

 The organisation aims to prevent errors before they occur, demands participation by all, including customers and suppliers, and the structure is driven by the entire Board of Directors. Which method of management has Organisation X adopted?

Cyber and physical systems becoming increasingly autonomous is part of which characteristic of the 4th industrial revolution?

Which of the following organisations would best describe a 'professional bureaucracy'?

Which of the following is the term used to describe the degree to which a task in an organisation is divided into a number of separate activities?

General Data Protection Regulation (GDPR) was introduced throughout the EU in 2018. The legislation details several principles about data and the requirement for data controllers.

Which of the following best describes the role of data controllers?

One of the characteristics of Big Data is velocity. Which of the following most accurately defines what this means?

Which of the following is an example of a computerised system that is used to plan production requirements of raw materials, work-in-progress and finished goods?

Which of the following is NOT a form of viral marketing?

Which TWO of the following relate to corporate social responsibility (CSR) rather than corporate governance?

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?

A Company is considering to outsource its accounts payable According to the transaction cost theory of Williamson and Coase, which of the following involve activities and costs associated with policing and enforcing the agreement with the service provider?

Mitch owns a small furniture business, which he is keen to grow.

Which of the following would MOST benefit the growth of Mitch's business:

There are four types of quality cost - prevention, appraisal, internal and external failure. Which of the following provides the best description for an external failure cost?

Which THREE operations management issues are associated with the primary activity of inbound logistics?

Which TWO of the following are important aspects of the product in the marketing mix?

Human Resource Management (HRM) and Personnel are different.

Which of the following is NOT a characteristic of Human Resource Management (HRM)?

Company Q has several layers of management. The Chief Executive Officer (CEO) wishes to remove some of these layers to streamline the organisation and increase efficiencies. The initial plan is for third party contractors to take over support activities. What change in the organisation is the CEO making?

TRA is a multinational company which generates large quantities of data across its various operating divisions, from which it produces a range of management reports.

Which technological benefit of artificial intelligence is most likely to be of use to the company?

An organisation has grown in size over the last 6 months and it wishes to improve communication with its employees. Examples of information to share include company policies, human resource information and notices to employees.

Which type of system should the company adopt?

H works in the finance function and has been asked by the Finance Manager to draft a report to be part of the annual update to go out to all the employees of the organisation

H informs the Finance Manager the intention is to include a whole range of financial information including ratios and comparisons for the previous years in the report

Which of the following qualities of good information should H be most concerned with when producing the report?

Which of the following best outlines the shift to higher level' skills anticipated to be fundamental to future accountants'?

There are several inter-related activities thought critical in implementing internal marketing.  Which THREE are valid?

Which of the following would work as Support Staff in Mintzberg's organisational structure?

The use of big data and smart technology by the sales and marketing function of an organisation is most likely to be associated with which of the following?

Which one of the following structures primarily suits a nationwide business with three product lines; for example, soup, condiments and baby food?

AAA Hotel provides accommodation near a major airport. When considering capacity management the hotel needs to clarify the component measurements identified below.

Match each of the three measurements below with the correct capacity element.

Karl runs a factory. He wants his employs to feel that their role in the company has meaning.

Which of the following would help to make his employees feel this way?

From the following, which best defines Business Process Re-engineering (BPR)?

T Company has recently appointed J as Chief Data Officer

One of the responsibilities of the appointment is to ensure compliance with the General Data Protection Regulations (GDPR) in force in the jurisdiction

J's first action was to carry out an internal audit of GDPR compliance

Which THREE of the following audit findings are indicators that T Company is compliant with GDPR''

Information relating to production, accounting records and payroll are most likely to be used by which of the following stakeholders?

YKF is a manufacturer of candles with world-wide operations.

The finance department within YKF has recently adopted the use of accounting systems that are hosted and operated by an external provider, instead of being in-house.

The technology allows different users to access elements of the accounting software, regardless of location, through either an internet browser or an app on their mobile device

What technology has YKF adopted to make its accounting software more flexible?

Which of the following is NOT a component of the working capital cycle?

Offshoring may be successful when which of the following applies?

The coherent approach for organising, governing, analysing and deploying an organisations' information assets' Which of the following does the above statement describe?

Which of the following technologies is described as a decentralised, distributed and public digital ledger that is used to record transactions across many computers?

Which of the following would be a disadvantage of the use of 'big data'?

Which of the following organisational approaches is associated with the consistent delivery of a product or service?

Which THREE of the following areas would be improved by an organisation using a Customer Relationship Management (CRM) system?

Which of the following is one of the five key areas of an effective approach to corporate digital responsibility (CDS)?

Which of the following are types of connected stakeholders? Select ALL that apply.

Which of the following statements is correct in relation to a tall organisation?

M works in the finance function of S Company, a logistics and distnbution organisation

M has been asked to assist in narrating how the company has performed by collating the regular six monthly review for distribution to shareholders

Which of the following finance function activities best describes the activities M is likely be involved in?

An organisation owned by its customers, generally not-for-profit and in the private sector, is commonly known as which one of the following?

An entity has several subsidiaries including F, which has an urgent staffing issue. The Financial Controller of F is due to start her maternity leave in 3 weeks time and there is currently a recruitment freeze in place to curtail employment costs. Human Resources needs to resolve the issue of covering the Financial Controller's position on a temporary basis. Which TWO of the options below will be suitable in these circumstances?

Which of the following best defines Business Process Re-engineering (BPR)?