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CIMA E1 real answers - Managing Finance in a Digital World

E1
  • Exam Code: E1
  • Exam Name: Managing Finance in a Digital World
  • Updated: Dec 13, 2025
  • Q & A: 335 Questions and Answers
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CIMA Managing Finance in a Digital World Sample Questions:

1. Company P is a recruitment agency specialising in placing accountancy and legal personnel in employment. A large part of the role of the agency is to meet the prospective individuals in order to ensure they are placed in the most appropriate roles.
Which THREE elements of the marketing mix relate specifically to the type of business described, to a greater extent than would apply to a manufacturing company?

A) Processes
B) Price
C) Physical evidence
D) Promotion
E) Product
F) People


2. Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.
Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

A) A sales director who is well known and popular throughout the industry.
B) High tech and expensive filling machines in the factory.
C) A building that has been designed specifically for manufacturing light bulb filaments.
D) An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.


3. Which of the following is a cost of information?

A) Improving pricing strategies
B) Improving product design
C) Improving marketing strategies
D) Improving system design


4. Clear career promotion and progression ladders are most obvious under which type of organisational structure?

A) Networked
B) Virtual
C) Horizontal
D) Vertical


5. The Finance Director has been asked to produce a cost saving plan for the organisation which is to come into effect immediately. His initial suggestion to enable quick savings is to cut the staff development and training budget by 50%. Before he publishes the plan he has asked you to review it and let him know what the effect of this may be in the short term.
Select ALL that apply.

A) Staff motivation may reduce
B) Key staff may leave
C) There may be a loss of competitive advantage
D) Recruitment may be more difficult
E) Profit will increase
F) Staff skill levels may reduce


Solutions:

Question # 1
Answer: A,C,F
Question # 2
Answer: D
Question # 3
Answer: D
Question # 4
Answer: D
Question # 5
Answer: A,D,E

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