CIMA Managing Finance in a Digital World : E1

  • Exam Code: E1
  • Exam Name: Managing Finance in a Digital World
  • Updated: Jul 03, 2026
  • Q&As: 335 Questions and Answers

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CIMA Managing Finance in a Digital World Sample Questions:

1. Company E operates a management consultancy business with four international offices. All offices specialise in helping new businesses, with all support operations dealt with by headquarters.Which of the organisational structures below would best describe Company E.

A) Geographical
B) Divisional
C) Functional
D) Matrix


2. XY Company operates a flexible manufacturing system, manufacturing a single standard product. What is the disadvantage of this system if the organisation expands its product range?

A) Small batches can be accommodated
B) The cost of enhanced flexibility
C) Fast response times
D) The ability to change between jobs


3. Corporate social responsibility (CSR) encompasses four different dimensions.
Match each of the descriptions below with the correct CSR dimension.


4. Which of the following will mean a company has breached a General Data Protection Regulation (GDPR) principle'?

A) Data has been used fairly, lawfully and transparently
B) Data has been kept for longer than necessary
C) Data has been kept securely with restricted access
D) Data has been deleted after it is no longer required


5. AB Company is currently the sole supplier of raw material to XY Company and has recently increased its prices. This has been highlighted by a raw material price variance in the management reports of XY Company, and in order to correct this the Finance Director has recommended that an alternative cheaper supplier be found as soon as possible. The Purchasing Department has indicated that only AB is able to supply all of the company's requirements and has been doing so reliably to a high quality on a just-in-time (JIT) basis for many years. Finding an alternative will involve purchasing from several unknown suppliers. Which of the following are possible consequences of this decision?
Select ALL that apply.

A) Product profitability will increase
B) Speed of production will increase
C) Quality will decrease
D) Administration costs will decrease
E) Inventory levels will increase
F) Manufacturing costs will decrease


Solutions:

Question # 1
Answer: A
Question # 2
Answer: B
Question # 3
Answer: Only visible for members
Question # 4
Answer: B
Question # 5
Answer: A,C,E

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