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　　Paper E1
 
　　Kaplan Publishing/Kaplan Financial
 
　　CIMA FINAL ASSESSMENT
 
　　Enterprise Operations
 
　　November 2010
 
　　Time allowed
 
　　Reading and planning: 20 minutes
 
　　Writing: 3 hours
 
　　All FOUR questions are compulsory and MUST be attempted.
 
　　Do NOT open this paper until instructed by the supervisor.
 
　　During reading and planning time only the question paper may be
 
　　annotated. You must NOT write in your answer booklet until
 
　　instructed by the supervisor.
 
　　This question paper must not be removed from the examination
 
　　hall.
 
　　CIMA E1: ENTERPRISE OPERATIONS
 
　　? Kaplan Financial Limited, 2010
 
　　KAPLAN PUBLISHING
 
　　FINAL ASSESSMENT QUESTIONS
 
　　SECTION A
 
　　ANSWER ALL PARTS OF THE QUESTION
 
　　QUESTION 1
 
　　1.1
 
　　Costs associated with planning, training and establishing methods and procedures in
 
　　quality matters are referred to as:
 
　　A external failure costs
 
　　B internal failure costs
 
　　C appraisal costs
 
　　D prevention costs (2 marks)
 
　　1.2
 
　　Organisations use psychometric testing mainly for:
 
　　A systems implementation
 
　　B selecting suitable supply partners
 
　　C validating market research data
 
　　D staff selection and promotion decisions (2 marks)
 
　　1.3
 
　　Which of the following is the main drawback of the product orientation?
 
　　A The product may not meet the needs of the customer
 
　　B Low costs may be associated with low quality
 
　　C Surplus production if demand exceeds supply
 
　　D Customers may not like the aggressive promotional policies used (2 marks)
 
　　1.4
 
　　Flexible working practices and a commitment to improvements are features of:
 
　　A personal selling
 
　　B teleworking
 
　　C a performance management system
 
　　D lean production methods (2 marks)
 
　　1.5
 
　　At which stage of the product lifecycle may the price be dropped below cost price?
 
　　A The decline stage
 
　　B The market shakeout stage
 
　　C The maturity stage
 
　　D The growth stage (2 marks)
 
　　KAPLAN PUBLISHING
 
　　CIMA E1: ENTERPRISE OPERATIONS
 
　　1.6
 
　　Porter’s Diamond is a model that explains:
 
　　A how an organisation gains competitive advantage
 
　　B how a country gains competitive advantage
 
　　C how a product gains competitive advantage
 
　　D how an organisation can assess risk in a country (2 marks)
 
　　1.7
 
　　Employees may promise to work hard, show loyalty to the organisation and develop
 
　　new skills. Employers may promise to provide opportunities for promotion, training
 
　　and pay commensurate with performance. These are likely features of:
 
　　A a psychological contract
 
　　B an employment contract
 
　　C the organisation’s HR policy
 
　　D the negotiation between the prospective employer and employee before a job
 
　　is accepted
 
　　(2 marks)
 
　　1.8
 
　　Which of the following is NOT a reason for market segmentation proving difficult or
 
　　inappropriate?
 
　　A the total market is so small making segmentation unprofitable
 
　　B consumer differences exist, making it difficult to analyse them into segments
 
　　C the market can be easily reached by the organisation
 
　　D the total market is homogenous (2 marks)
 
　　1.9
 
　　‘Natural wastage’ normally refers to:
 
　　A advertising effort failing to reach a target market segment
 
　　B job applicants who fail to attend interviews
 
　　C customers ‘lost’ to competitors every year
 
　　D a reduction in the workforce caused by the decisions of the individual workers
 
　　(2 marks)
 
　　1.10
 
　　According to the product lifecycle the ‘market shakeout’ stage follows immediately
 
　　from:
 
　　A the market decline stage
 
　　B the market growth stage
 
　　C the market maturity stage
 
　　D the introduction stage (2 marks)
 
　　(Total: 20 marks)
 
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