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CIMA E1 exam : Managing Finance in a Digital World

E1 Exam Questions
  • Exam Code: E1
  • Exam Name: Managing Finance in a Digital World
  • Updated: May 31, 2026
  • 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) Physical evidence
B) Promotion
C) Processes
D) Product
E) Price
F) People


2. Which of the following is a disadvantage of virtual operations?

A) Reduced investment in assets
B) Possible linkages in the value chain
C) Flexibility and speed of operations
D) The suppliers/resources may also be available to rival operations


3. Having the right assets and making the best use of them is crucial if an organisation is to achieve its strategies on a sustainable basis. Which of the following best describes the row of the finance function in relation to an organisation's assets?

A) Collating and providing information to enable efficient asset management
B) Deciding on which new machinery to buy for the production facility.
C) Setting asset lifetimes that are in keeping with shareholders' requirements.
D) Ensuring that assets are used to their optimum capacity on an on-going basis.


4. A PESTEL analysis (political, economic, social, technological, ecological and legal) is used by marketing to monitor its macro environment. Select THREE examples of economic factors

A) Social mobility
B) Consumers' propensity to save
C) Interest rates
D) New ways of distribution
E) The rate of inflation
F) The introduction of new legislation relating to business tax


5. Company E is renewing the IS within the organisation. This new system will enable all employees to access customer information, orders and credit control status to overcome the lack of integration between departments suffered with the previous system. Managers envisage some resistance to the change and want to try to make the transition as smooth as possible. To achieve this, all employees have been invited to share their ideas of what features the new system should include and how they would like the final interface to work. Which of Kotter, Schlesinger and Sache's methods of dealing with resistance is described above?

A) Negotiation
B) Participation
C) Education
D) Facilitation


Solutions:

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

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