Accountant Strategic Case Study (CIMA-SCS) Free Practice Test
Question 1
- Prioritises risks and focuses investment on the most important
- Keeps the board informed of risks
- Ensures a variety of risk-mitigating controls are in place
- Allocates responsibility for control actions and sets deadlines
- Provides evidence of proactive risk management to internal and external parties.
- Keeps the board informed of risks
- Ensures a variety of risk-mitigating controls are in place
- Allocates responsibility for control actions and sets deadlines
- Provides evidence of proactive risk management to internal and external parties.
Correct Answer: C
Question 2
- Rivalry among competitors
- Threat of new entrants
- Threat of substitute products
- Bargaining power of buyers
- Bargaining power of suppliers
- Threat of new entrants
- Threat of substitute products
- Bargaining power of buyers
- Bargaining power of suppliers
Correct Answer: D
Question 3
- Scenario planning
- Stress testing
- Stress testing
Correct Answer: B
Question 4
- Reduction of transaction costs due to less transactions
- Reduction of currency risk but allowing Daistruk to decide when to convert (based on ex. rate)
- Reduction of currency risk but allowing Daistruk to decide when to convert (based on ex. rate)
Correct Answer: C
Question 5
- Technological factors
- Environmental issues
- Social issues
- Employees, Management
- Materials
- Environmental issues
- Social issues
- Employees, Management
- Materials
Correct Answer: C
Question 6
- Differentiator- persuading customers that the product is superior to that offered by competitors
- Cost Leader - lowest cost provider compared to competitors
-Focus- aimed at a segment of the market
- Cost Leader - lowest cost provider compared to competitors
-Focus- aimed at a segment of the market
Correct Answer: A
Question 7
Congo, Brownies
Correct Answer: B
Question 8
- How should funds be raised?
- What is cost of finance?
- Impact on gearing?
- Equity or debt financing?
- Look at LT vs. ST
- What is cost of finance?
- Impact on gearing?
- Equity or debt financing?
- Look at LT vs. ST
Correct Answer: A
Question 9
Pies and Pastry (I love Pies and Pastry)
Correct Answer: B
Question 10
- Cumulative (roll over)
- Non-Cumulative (no roll)
- Participating (based on performance)
- Convertible (exchange for ordinary shares)
- Non-Cumulative (no roll)
- Participating (based on performance)
- Convertible (exchange for ordinary shares)
Correct Answer: B
Question 11
155•F
Correct Answer: A
Question 12
- Shareholders offered bonus shares for free
- Alternative to cash dividend
- Allows Daistruk to retain cash in business
- Could dilute shares however
- Alternative to cash dividend
- Allows Daistruk to retain cash in business
- Could dilute shares however
Correct Answer: C
Question 13
Deliver long-term value creation:
1. Financial (e.g. investments, cash)
2. Manufactured (e.g. buildings, inventory)
3. Intellectual (e.g. copyright, patents)
4. Human (e.g. people's competencies)
5. Social & Relationship (e.g. relations with stakeholders, branding, reputation)
6. Natural (e.g. Environmental resources like air, land, water)
1. Financial (e.g. investments, cash)
2. Manufactured (e.g. buildings, inventory)
3. Intellectual (e.g. copyright, patents)
4. Human (e.g. people's competencies)
5. Social & Relationship (e.g. relations with stakeholders, branding, reputation)
6. Natural (e.g. Environmental resources like air, land, water)
Correct Answer: A