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  3. E2

CIMA E2 Exam (page: 4)
CIMA Managing Performance
Updated on: 24-Mar-2026

Viewing Page 4 of 43
E2 PDF 210 Questions

Which of the following is the concept whereby a manager has a right to exercise power on behalf the organisation?

  1. Accountability
  2. Empowerment
  3. Authority
  4. Delegation

Answer(s): C



Many public companies remain committed to the rational approach to strategic decision making believing that the long term advantages outweigh the disadvantages.

Which TWO of the following factors are considered to be advantages of the rational approach?

  1. Less time consuming and less expensive
  2. Fosters an entrepreneurial spirit
  3. Aids target setting and controls
  4. Stakeholder confidence is enhanced

Answer(s): C,D



"The ability to exert influence and make someone act according to your own preferences" is the definition of which of the following?

  1. Responsibility
  2. Delegation
  3. Authority
  4. Power

Answer(s): D



The Thomas-Kilmann model suggests five conflict handling strategies.
Which THREE of the following are part of the model?

  1. Competing: both parties seek to maximise their own interests and goals thus creating winners and losers.
  2. Conflict reduction: involves building on areas of agreement and changing attitudes and perceptions by use of compromises and concessions.
  3. Collaborating: involves a 'win-win' strategy which is achieved through joint confrontation of the problem.
  4. Conflict suppression: involves threatened authority or force or smoothing over the conflict by de-emphasing the seriousness of the situation.
  5. Accommodation: involves a strategy in which one party puts the other party's interest first even when it is to its own disadvantage.

Answer(s): A,C,E



Setting a mission is the first stage of the rational approach to strategy setting. According to David, which THREE of the following are useful areas to include in an organisation's mission statement?

  1. Customers
  2. Shareholders
  3. Markets
  4. Philosophy
  5. Suppliers
  6. Government

Answer(s): A,C,D



Viewing Page 4 of 43



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