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  • Exam Name: Managing Finance in a Digital World
  • Last Update: 02-Jun-2023
  • Questions and Answers: 295
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E1 Questions and Answers

Question # 1

Which of the following is a disadvantage of outsourcing?

A.

Outsourcing can remove uncertainty about cost.

B.

It can save on costs by making use of a supplier's economies of scale.

C.

Access to specialist knowledge is made possible.

D.

Transaction costs will arise as a consequence of the outsourcing agreement.

Question # 2

Which of the following is associated with the control aspect of the finance function?

A.

Amendment of original budgets

B.

Pricing decisions

C.

Investment decisions

D.

Strategy formulation

Question # 3

Which of the following is an example of sustainability impacting operations management?

A.

A company only buys printer paper that has been recycled

B.

A company has a whistle-blowing policy

C.

A company keeps profits within the business for future investment

D.

A company sells goods to developing nations

Question # 4

AB Company has recently produced a very successful brand of washing powder which has achieved high market growth and a high market share. According to the Boston Consulting Group (BCG) matrix what is the product's next stage of development?

A.

Cash cow

B.

Star

C.

Question mark

D.

Dog

Question # 5

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?

A.

Span of control

B.

Centralisation

C.

Work specialisation

D.

Formalisation

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