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  • Exam Name: Managing Finance in a Digital World
  • Last Update: 27-May-2024
  • Questions and Answers: 336
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E1 Questions and Answers

Question # 1

When implementing a new IT system and according to the theory of Kotter, Schlesinger and Sache, which of the following is a benefit of using participation as a way of overcoming resistance to change?


Involving user expertise will encourage commitment.


Compromise will overcome resistance.


Conflict is dealt with in an orderly fashion.


Understanding the benefits will lead to acceptance.

Question # 2

An individual works for Organisation A. They are responsible for collating financial information from all the local County primary schools in order to report budgetary requirements for the next financial year.

An individual works for Organisation B. They are responsible for collating financial information from all the local charity shops in order to report donation items and items sold.

An individual works for Organisation C. They are responsible for counting and recording raw materials stock, work in progress and finished goods stock on a monthly basis for the managers to report on rates of stock wastage and pilferage at the monthly board meeting.

For each of the organisations above, match them with the relevant sector below.

E1 question answer

Question # 3

Company O has appointed a new CEO who is well known in the industry for making radical changes within the companies that she works for. After her first 9 months in the role, she announced some changes that she wanted to make, starting with the Finance Department. She stressed an intention to focus inwards on improvements to efficiencies and that she was not afraid to make fundamental changes if this is what is required to achieve those improvements. Which of the following is described above?


Business Process Re-engineering


Segregation of the finance function


Relocation of production


Reconfiguration to market oriented.

Question # 4

Continued improvements in Information Technology have encouraged organisations to use IT increasingly to assist in their development. Which of the following is such an improvement in IT?


Increased data storage capacity


Improved operations and manufacturing processes


Improved communications systems


Improved decision making processes

Question # 5

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?









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