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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?


Outsourcing can remove uncertainty about cost.


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


Access to specialist knowledge is made possible.


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?


Amendment of original budgets


Pricing decisions


Investment decisions


Strategy formulation

Question # 3

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


A company only buys printer paper that has been recycled


A company has a whistle-blowing policy


A company keeps profits within the business for future investment


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?


Cash cow




Question mark



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?


Span of control




Work specialisation



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