E2 Exam Questions and Answers | Exam-Dumps (Page: 2)

QUESTION: 6

H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair and servicing of very large motorcycles, typically with engines larger than 1000cc. Over the years H has built up a renowned team of highly skilled technicians that are experts in this particular size of motorcycle. H believes that their skills are rare and difficult, if not impossible, to imitate by any competitor in the region.

Despite this advantage the company has been suffering from declining profits in the past three years and the marketing consultant has advised H to change the focus of the company towards small 50cc mopeds and scooters - because that "is clearly what the market is now wanting".

The change being proposed is:

from a resource-based view to a positioning approach.
from a resource-based view to an incremental approach.
from a positioning approach to a 'market driven' strategy.
from a positioning approach to a rational model.

Answer(s): A

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QUESTION: 7

Which of the following is NOT a benefit of a good audit system?

Provides a form of internal control.
Provides a basis for improving the finance function's presentation of a company's financial records.
Provides a basis for improving the finance function's efficiency and effectiveness in the information it presents to management.
Provides a basis for streamlining the finance function.

Answer(s): D

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QUESTION: 8

With reference to Herzberg's motivation-hygiene concept (two-factor theory) relating to employee motivation, which of the following is a correct interpretation of his findings?

The presence of hygiene factors are necessary in the workplace to prevent dissatisfaction.
The absence of hygiene factors will inspire employees and improve motivation.
The absence of hygiene factors will provide a better work environment and motivate employees.
The presence of hygiene factors will increase employee morale and motivation.

Answer(s): A

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QUESTION: 9

An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis.

It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal.

What stage of its strategic analysis has the organisation failed to carry out?

An external analysis of the business's environment
Identification of strategic options
Identification of functional policies
Making strategic choices

Answer(s): A

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QUESTION: 10

Mintzberg describes various forms of strategy and labels each form.
Which of the following options contains the correct matching of label with description?

Plan = means of identifying place in the environment/market
Perspective = manoeuvre in a competitive business game
Pattern = consistent behaviour over time
Ploy = a path to get from here to there

Answer(s): C

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CIMA E2 Exam (page: 2) CIMA Managing Performance Updated on: 07-Feb-2026

QUESTION: 6

QUESTION: 7

QUESTION: 8

QUESTION: 9

QUESTION: 10

CIMA E2 Exam (page: 2)
CIMA Managing Performance
Updated on: 07-Feb-2026