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CIMA Strategic Level Case Study Exam E3 The free demo has three versions.
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E3 PDF DEMO:
QUESTION NO: 1
STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)
A. Turnaround
B. Liquidation
C. Retrenchment
D. Facilitation
E. Divestment
Answer: E
QUESTION NO: 2
Porter suggests that competitive advantage arises from the implementation of a 'generic strategy'. Which THREE of the following are NOT generic strategies?
A. Focus
B. Market penetration
C. Market development
D. Cost leadership
E. Differentiation
F. Diversification
Answer: B,C,F
QUESTION NO: 3
HHH is a mobile telecommunications provider in Country D.
HHH presently offers telephone and text services at a price per unit (a unit is defined as 1 minute or
160 text characters). It provides Internet connection from handsets at a fixed fee per month. Select the appropriate strategic response to each of the industry developments listed below.
Answer:
QUESTION NO: 4
Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?
A. Assist the Board in determining risk appetite.
B. Integration of financial and non-financial information.
C. Consider and raise awareness of the ethical impact of proposed strategic decisions.
D. Writing the Annual Report.
Answer: A
QUESTION NO: 5
As a CIMA qualified Management Accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which of the following statements are TRUE?
Select ALL that apply.
A. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
B. A company's Code of Business Conduct can be rules based.
C. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business
Conduct, the company's Code of Business Conduct takes priority.
D. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business
Conduct, CIMA's Code of Ethics takes priority.
E. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to
Confidentiality. Disclosure on public interest grounds is therefore prohibited.
F. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
Answer: A,B
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Updated: May 28, 2022