CIMA E2

Format: Question | Answer | Explanation

SECTION 1 - MANAGEMENT, LEADERSHIP AND MOTIVATION

1. A manager believes employees naturally dislike work, avoid responsibility and require close supervision. Which theory is being demonstrated?

A. McGregor Theory Y

B. McGregor Theory X

C. Herzberg

D. Mayo

ANSWER: B

EXPLANATION: Theory X assumes workers dislike work and need direction/control.

2. A manager believes employees can be self-directed, accept responsibility and find work satisfying. Which theory applies?

A. Theory X

B. Theory Y

C. Scientific management

D. Hygiene theory

ANSWER: B

EXPLANATION: McGregor Theory Y takes a positive view of employee motivation and responsibility.

3. Which TWO are Herzberg motivators?

A. Salary

B. Achievement

C. Working conditions

D. Recognition

E. Job security

ANSWER: B, D

EXPLANATION: Achievement and recognition are motivators. Salary, conditions and security are hygiene factors.

4. An employee has excellent pay and job security but receives no recognition or responsibility. According to Herzberg, which statement is most appropriate?

A. The employee must be highly motivated

B. Hygiene factors automatically create motivation

C. The employee may not be dissatisfied but may still lack motivation

D. Recognition is a hygiene factor

ANSWER: C

EXPLANATION: Hygiene factors prevent dissatisfaction; motivators create positive satisfaction.

5. Under Vroom's expectancy theory, an employee believes they can achieve a target but doubts management will pay the promised bonus. Which element is low?

A. Expectancy

B. Instrumentality

C. Valence

D. Equity

ANSWER: B

EXPLANATION: Instrumentality is the belief that performance will lead to the promised reward.

6. Under Vroom, an employee believes they can achieve the target and will receive the reward, but does not value the reward. Which element is low?

A. Expectancy

B. Instrumentality

C. Valence

D. Hygiene

ANSWER: C

EXPLANATION: Valence is the value the individual places on the reward.

7. Which theorist is most closely associated with management by objectives?

A. Fayol

B. Drucker

C. Mintzberg

D. Mayo

ANSWER: B

EXPLANATION: Drucker emphasised aligning individual/departmental objectives with organisational objectives.

8. Which TWO are functions associated with Fayol?

A. Planning

B. Figurehead

C. Organising

D. Spokesperson

E. Negotiator

ANSWER: A, C

EXPLANATION: Fayol's functions include planning, organising, commanding, coordinating and controlling.

9. A CEO represents the company at a ceremonial event. Under Mintzberg, which role is this?

A. Negotiator

B. Figurehead

C. Monitor

D. Entrepreneur

ANSWER: B

EXPLANATION: Figurehead is an interpersonal managerial role.

10. Which management school emphasises informal groups and social relationships at work?

A. Classical

B. Human relations

C. Scientific management

D. Systems engineering

ANSWER: B

EXPLANATION: Mayo's human relations approach emphasises social relationships and group behaviour.

11. A business redesigns jobs when introducing automation because management believes social and technical systems must work together. Which theorists are most relevant?

A. Burns and Stalker

B. Trist and Bamforth

C. Blake and Mouton

D. Fayol

ANSWER: B

EXPLANATION: Trist and Bamforth are associated with the socio-technical approach.

12. A stable organisation uses a rigid hierarchy and centralised decision making. Which concept from Burns and Stalker best describes it?

A. Organic

B. Mechanistic

C. Task culture

D. Person culture

ANSWER: B

EXPLANATION: Mechanistic structures suit relatively stable environments.

13. A manager balances concern for production and concern for people. Which framework is relevant?

A. Blake and Mouton's managerial grid

B. Mendelow

C. Belbin

D. Porter

ANSWER: A

EXPLANATION: Blake and Mouton classify management styles by concern for people and production.

14. Under Adair's action-centred leadership, which THREE needs must a leader balance?

A. Task

B. Customer

C. Group

D. Individual

E. Supplier

ANSWER: A, C, D

EXPLANATION: Adair focuses on task, group/team and individual needs.

15. Which power arises from specialist knowledge?

A. Coercive

B. Legitimate

C. Expert

D. Reward

ANSWER: C

EXPLANATION: Expert power comes from knowledge or expertise.

16. Which power arises from a person's formal position?

A. Referent

B. Legitimate

C. Expert

D. Informal

ANSWER: B

EXPLANATION: Legitimate power derives from organisational authority.

SECTION 2 - TEAMS, CULTURE, COMMUNICATION AND PEOPLE

17. A team is agreeing standards and accepted ways of working. Which Tuckman stage is this?

A. Forming

B. Storming

C. Norming

D. Performing

ANSWER: C

EXPLANATION: Norming is when team norms and working practices become established.

18. Which Belbin role is creative, imaginative and generates original ideas?

A. Shaper

B. Plant

C. Implementer

D. Completer-finisher

ANSWER: B

EXPLANATION: The Plant is the creative idea generator.

19. Which Belbin role is dominant, driven and pushes the team to achieve?

A. Plant

B. Teamworker

C. Shaper

D. Monitor evaluator

ANSWER: C

EXPLANATION: The Shaper provides drive and challenges inertia.

20. Which Belbin role focuses on deadlines and errors?

A. Completer-finisher

B. Coordinator

C. Specialist

D. Resource investigator

ANSWER: A

EXPLANATION: Completer-finishers are conscientious and focused on detail and completion.

21. Which Belbin role supports colleagues and promotes harmony?

A. Plant

B. Teamworker

C. Shaper

D. Specialist

ANSWER: B

EXPLANATION: Teamworkers are cooperative and help maintain team cohesion.

22. According to Schein, visible office layout, dress and observable rituals are:

A. Basic assumptions

B. Artefacts

C. Core competencies

D. Hygiene factors

ANSWER: B

EXPLANATION: Artefacts are visible or observable manifestations of culture.

23. A message changes meaning during translation before reaching the recipient. What communication problem has occurred?

A. Noise

B. Overload

C. Distortion

D. Timing

ANSWER: C

EXPLANATION: Distortion occurs when the meaning of a message changes.

24. Facial expression and posture are examples of:

A. Formal communication

B. Non-verbal communication

C. Diagonal communication

D. Written communication

ANSWER: B

EXPLANATION: Body language is non-verbal communication.

25. Which sequence best represents the basic communication process?

A. Receiver - message - sender - feedback

B. Sender - encode - message - receiver decodes - feedback

C. Message - sender - receiver - noise

D. Sender - feedback - encode - receiver

ANSWER: B

EXPLANATION: Communication begins with the sender encoding a message and ends with feedback.

26. Employees accept a proposal because each incorrectly believes everyone else supports it. Which concept applies?

A. Groupthink

B. Abilene paradox

C. Role conflict

D. Social loafing

ANSWER: B

EXPLANATION: The Abilene paradox involves collective agreement with an outcome individuals privately oppose.

27. Which is an advantage of constructive conflict?

A. It always creates consensus

B. It can bring emotions and issues into the open

C. It prevents debate

D. It eliminates disagreement

ANSWER: B

EXPLANATION: Constructive conflict can expose issues and support better discussion.

28. Which THREE are CIMA ethical principles?

A. Integrity

B. Objectivity

C. Professional behaviour

D. Profitability

E. Market leadership

ANSWER: A, B, C

EXPLANATION: Integrity, objectivity and professional behaviour are among CIMA's ethical principles.

SECTION 3 - STAKEHOLDERS AND INFLUENCE

29. Under Mendelow, a stakeholder has high power and high interest. How should they be managed?

A. Minimal effort

B. Keep informed

C. Keep satisfied

D. Manage closely/key player

ANSWER: D

EXPLANATION: High-power, high-interest stakeholders require close management.

30. A stakeholder has high power but low interest. What is the appropriate response?

A. Keep satisfied

B. Keep informed

C. Minimal effort

D. Ignore

ANSWER: A

EXPLANATION: High-power, low-interest stakeholders should be kept satisfied.

31. A stakeholder has low power but high interest. What is the appropriate response?

A. Minimal effort

B. Keep informed

C. Keep satisfied

D. Key player

ANSWER: B

EXPLANATION: Low-power, high-interest stakeholders should be kept informed.

32. Which factor is most associated with stakeholder power rather than interest?

A. Desire to follow a project

B. Formal representation in decision making

C. Personal curiosity

D. Effort spent reading updates

ANSWER: B

EXPLANATION: Formal representation can give a stakeholder genuine influence over decisions.

33. A worker agrees to help because colleagues normally do the same. Which Cialdini principle is illustrated?

A. Authority

B. Reciprocity

C. Social proof

D. Scarcity

ANSWER: C

EXPLANATION: Social proof means following behaviour perceived as normal among others.

34. An employee complies because the request comes from a senior executive. Which Cialdini principle applies?

A. Authority

B. Liking

C. Reciprocity

D. Commitment

ANSWER: A

EXPLANATION: Authority increases influence because of perceived status or expertise.

SECTION 4 - PORTER AND STRATEGY

35. Customers can switch easily between several similar providers and demand lower prices. Which Five Forces pressure is strongest?

A. Supplier power

B. Buyer power

C. Threat of entrants

D. Substitutes

ANSWER: B

EXPLANATION: Customers exert buyer power when they have leverage over suppliers.

36. A manufacturer relies on only two suppliers of a specialist component. Which force is strongest?

A. Buyer power

B. Supplier power

C. Rivalry

D. Substitutes

ANSWER: B

EXPLANATION: Few alternative suppliers increase supplier bargaining power.

37. Starting a competing bank requires major capital and regulatory approval. Which force is being affected?

A. Rivalry

B. Buyer power

C. Threat of new entrants

D. Substitutes

ANSWER: C

EXPLANATION: Capital and regulatory requirements are barriers to entry.

38. Existing supermarket chains repeatedly cut prices to win customers from one another. Which force is this?

A. Competitive rivalry

B. Threat of substitutes

C. Supplier power

D. New entrants

ANSWER: A

EXPLANATION: Competition among existing firms is rivalry.

39. Business travellers replace flights with video conferencing. Which force is this?

A. Buyer power

B. Supplier power

C. New entrants

D. Threat of substitutes

ANSWER: D

EXPLANATION: A substitute meets the same underlying need using a different solution.

40. Which THREE can act as barriers to entry?

A. Economies of scale held by incumbents

B. High capital requirements

C. Product differentiation

D. Many willing suppliers

E. Low customer loyalty

ANSWER: A, B, C

EXPLANATION: Scale economies, capital requirements and differentiation can make market entry harder.

41. A business targets the whole market by being the lowest-cost producer. Which generic strategy?

A. Differentiation

B. Cost leadership

C. Cost focus

D. Differentiation focus

ANSWER: B

EXPLANATION: Cost leadership is broad market plus low cost.

42. A luxury specialist serves a narrow customer segment using highly distinctive products. Which generic strategy?

A. Cost leadership

B. Cost focus

C. Differentiation

D. Differentiation focus

ANSWER: D

EXPLANATION: A narrow market plus uniqueness is differentiation focus.

43. Which is a primary activity in Porter's value chain?

A. Human resource management

B. Procurement

C. Operations

D. Firm infrastructure

ANSWER: C

EXPLANATION: Operations is a primary activity.

44. Which THREE are support activities in Porter's value chain?

A. HR management

B. Procurement

C. Firm infrastructure

D. Outbound logistics

E. Marketing and sales

ANSWER: A, B, C

EXPLANATION: HR, procurement, technology development and infrastructure are support activities.

45. Goods are stored and distributed to customers. Which primary activity is this?

A. Inbound logistics

B. Operations

C. Outbound logistics

D. Service

ANSWER: C

EXPLANATION: Outbound logistics covers storing and distributing finished goods.

SECTION 5 - STRATEGIC RESOURCES AND BUSINESS MODELS

46. A resource is required merely to meet minimum customer requirements. What is it?

A. Unique resource

B. Core competence

C. Threshold resource

D. Threshold competence

ANSWER: C

EXPLANATION: Threshold resources are minimum resources needed to compete.

47. An activity/process is required merely to meet minimum customer requirements. What is it?

A. Threshold competence

B. Unique resource

C. Core competence

D. Threshold resource

ANSWER: A

EXPLANATION: Threshold competence is the minimum capability/activity required.

48. A patented asset provides competitive advantage and is very difficult for competitors to obtain. What is it?

A. Threshold resource

B. Unique resource

C. Threshold competence

D. Core competence

ANSWER: B

EXPLANATION: A unique resource is an advantage-generating resource difficult to imitate or obtain.

49. A company's exceptional customer-service process creates competitive advantage and is difficult to imitate. What is it?

A. Core competence

B. Threshold resource

C. Unique resource

D. Threshold competence

ANSWER: A

EXPLANATION: Core competence is an advantage-generating capability or process.

50. Which order best represents the four business-model value activities?

A. Create, capture, define, deliver

B. Define, create, deliver, capture

C. Deliver, create, capture, define

D. Capture, define, create, deliver

ANSWER: B

EXPLANATION: Define value, create value, deliver value, capture value.

51. Which TWO business-model activities have a mainly strategic focus?

A. Define value

B. Create value

C. Deliver value

D. Capture value

ANSWER: A, D

EXPLANATION: Defining and capturing value are strategic; creating and delivering value are operational.

52. Which balanced scorecard perspective most closely links to creating value?

A. Financial

B. Customer

C. Internal business

D. None

ANSWER: C

EXPLANATION: Internal processes are central to creating value.

SECTION 6 - ECOSYSTEMS AND DIGITAL

53. An online marketplace creates the environment in which buyers and sellers interact. Which ecosystem role?

A. Asset provider

B. Experience provider

C. Platform provider

D. Process provider

ANSWER: C

EXPLANATION: Platform providers create the environment that allows an ecosystem to operate.

54. A company provides personalised customer-centric products within an ecosystem. Which role?

A. Experience provider

B. Platform provider

C. Asset provider

D. Process provider

ANSWER: A

EXPLANATION: Experience providers focus on the customer experience.

55. An ecosystem is best described as:

A. A single vertically integrated organisation

B. A complex web of interdependent enterprises and relationships

C. A government-only market

D. A simple supply contract

ANSWER: B

EXPLANATION: Ecosystems involve interdependent organisations and relationships creating and allocating value.

56. Compared with traditional markets, ecosystem participants are generally:

A. More adversarial and less collaborative

B. Less adversarial and more collaborative

C. Completely independent

D. Unable to share information

ANSWER: B

EXPLANATION: Ecosystems rely on collaboration and interdependence.

57. Which technology analyses very large and complex datasets to identify patterns?

A. Big Data analytics

B. Blockchain

C. Cloud computing

D. Automation

ANSWER: A

EXPLANATION: Big Data analysis is used to derive patterns and insights from large datasets.

58. Which Big Data characteristic refers to speed of generation and processing?

A. Volume

B. Variety

C. Velocity

D. Veracity

ANSWER: C

EXPLANATION: Velocity concerns speed.

59. Which Big Data characteristic concerns reliability and quality?

A. Variety

B. Veracity

C. Volume

D. Velocity

ANSWER: B

EXPLANATION: Veracity concerns trustworthiness and accuracy.

60. Which technology allows parties to trust a shared distributed record of transactions?

A. Data analytics

B. Artificial intelligence

C. Distributed ledger/blockchain

D. Automation

ANSWER: C

EXPLANATION: Distributed ledger technology maintains a shared record without a single central controller.

61. A company develops its own new digital capability internally. Which disruption strategy is this?

A. Build

B. Buy

C. Partner

D. Invest

ANSWER: A

EXPLANATION: Build means developing the capability internally.

62. A company acquires a technology company to obtain exclusive control of its technology. Which strategy?

A. Build

B. Buy

C. Partner

D. Ignore

ANSWER: B

EXPLANATION: Buying gives the organisation ownership/control of the capability.

63. VUCA stands for:

A. Value, Utility, Control, Agility

B. Volatility, Uncertainty, Complexity, Ambiguity

C. Variety, Uncertainty, Competition, Authority

D. Volume, Utility, Complexity, Agility

ANSWER: B

EXPLANATION: VUCA describes volatile, uncertain, complex and ambiguous environments.

SECTION 7 - PROJECT MANAGEMENT

64. What does TARA stand for?

A. Transfer, Avoid, Reduce, Accept

B. Test, Analyse, Review, Approve

C. Transfer, Assess, Report, Avoid

D. Treat, Accept, Reduce, Analyse

ANSWER: A

EXPLANATION: TARA is a project risk response mnemonic.

65. Purchasing insurance against a project risk is:

A. Avoidance

B. Reduction

C. Transfer

D. Acceptance

ANSWER: C

EXPLANATION: Insurance transfers financial consequences to another party.

66. Introducing additional internal controls to lower the probability of a risk is:

A. Transfer

B. Reduce

C. Accept

D. Avoid

ANSWER: B

EXPLANATION: Controls reduce likelihood and/or impact.

67. A project activity has earliest start day 10, latest finish day 29 and duration 14 days. What is its float?

A. 5 days

B. 19 days

C. 14 days

D. 29 days

ANSWER: A

EXPLANATION: Available window is 19 days; 19 - 14 = 5 days float.

68. What does the critical path determine?

A. Maximum possible project cost

B. Minimum overall project duration

C. Number of project stakeholders

D. Quality standard

ANSWER: B

EXPLANATION: The critical path is the longest-duration path through the network and determines minimum completion time.

69. Which formula is used for PERT expected time?

A. (O + M + P) / 3

B. (O + 2M + P) / 4

C. (O + 4M + P) / 6

D. (O + P) / 2

ANSWER: C

EXPLANATION: PERT weights the most likely estimate four times.

70. In PERT, contingency time allowance is best described as:

A. Overtime

B. Additional time allowed for uncertainty

C. Employee holiday

D. Float on every activity

ANSWER: B

EXPLANATION: Contingency allows for uncertainty in expected project duration.

71. Which THREE form the project triangle?

A. Cost

B. Quality

C. Time

D. Risk

E. People

ANSWER: A, B, C

EXPLANATION: The classic project triangle is cost, quality and time.

72. A project deadline is shortened and contractors are hired to complete work faster. Which TWO project constraints are directly changing?

A. Time

B. Cost

C. Quality

D. Scope

ANSWER: A, B

EXPLANATION: The deadline affects time and contractors increase cost.

73. Which project tool breaks required work into manageable workstreams?

A. Gantt chart

B. WBS

C. Resource histogram

D. Mendelow matrix

ANSWER: B

EXPLANATION: A work breakdown structure decomposes project work into manageable components.

74. Which tool is most useful for identifying overloaded or under-utilised employees?

A. Resource histogram

B. Critical path

C. PERT

D. Stakeholder matrix

ANSWER: A

EXPLANATION: Resource histograms show resource demand over time.

75. Which tool visually shows activities against time and overall project timescale?

A. WBS

B. Gantt chart

C. TARA

D. Value chain

ANSWER: B

EXPLANATION: Gantt charts plot activities against a time axis.

76. Which organisational structure integrates people from different functions while retaining functional relationships?

A. Pure project

B. Matrix

C. Functional only

D. Network only

ANSWER: B

EXPLANATION: Matrix structures combine project and functional lines of responsibility.

77. In which structure are departmental members seconded to a project on a full-time basis?

A. Lightweight matrix

B. Heavyweight matrix

C. Functional structure

D. Virtual structure

ANSWER: B

EXPLANATION: A heavyweight matrix gives the project stronger/full-time resources.

78. Which project role promotes the project and communicates its vision across the organisation?

A. Project champion

B. Project owner

C. Project auditor

D. Supplier

ANSWER: A

EXPLANATION: The champion advocates for the project.

79. Which project role provides and is accountable for project resources and achievement of business objectives?

A. Project champion

B. Project sponsor

C. Project teamworker

D. Project supplier

ANSWER: B

EXPLANATION: The sponsor provides/accountably supports resources and business objectives.

80. A milestone that can only be passed once specified criteria are met is:

A. Float

B. Control gate

C. Buffer

D. Workstream

ANSWER: B

EXPLANATION: A control gate is a formal decision/checkpoint with criteria.

81. Artificial slack is added to risky activities. What is this technique?

A. Buffering

B. Resource levelling

C. Avoidance

D. Outsourcing

ANSWER: A

EXPLANATION: Buffering builds additional time into a plan for risky activities.

82. Which feasibility dimension considers whether suitable technology and expertise are available?

A. Social

B. Technical

C. Ecological

D. Financial

ANSWER: B

EXPLANATION: Technical feasibility considers technology and technical expertise.

83. Which feasibility dimension considers impact on the natural environment?

A. Technical

B. Social

C. Ecological

D. Financial

ANSWER: C

EXPLANATION: Ecological feasibility examines environmental impact.

84. Which statement best distinguishes risk from uncertainty?

A. Risk can normally be quantified/probabilities estimated; uncertainty cannot reliably be quantified

B. Risk is always external

C. Uncertainty is always internal

D. They are identical

ANSWER: A

EXPLANATION: Risk allows probability assessment; uncertainty is not readily quantifiable.

85. What are the PMI project phases?

A. Initiation, Planning, Execution, Control, Closing

B. Define, Design, Deliver, Develop

C. Identification, Development, Implementation, Completion

D. Feasibility, Initiation, Planning, Review

ANSWER: A

EXPLANATION: The mock identifies these as the PMI process phases.

SECTION 8 - HR, PERFORMANCE, NEGOTIATION AND CONTROL

86. A 180-degree appraisal primarily obtains feedback from:

A. Customers

B. Suppliers

C. Colleagues

D. Regulators

ANSWER: C

EXPLANATION: In the mock, 180-degree appraisal involves colleague feedback.

87. According to Kram, mentoring includes which TWO broad functions?

A. Career

B. Financial

C. Psychosocial

D. Legal

ANSWER: A, C

EXPLANATION: Kram identifies career and psychosocial mentoring functions.

88. A worker feels unfairly rewarded compared with colleagues who made the same effort. What feeling is most likely?

A. Equity

B. Inequity

C. Empowerment

D. Valence

ANSWER: B

EXPLANATION: Perceived imbalance between contribution and reward creates inequity.

89. Integrative bargaining seeks:

A. A win-lose result

B. A mutually satisfactory win-win solution

C. Immediate confrontation

D. No compromise

ANSWER: B

EXPLANATION: Integrative bargaining aims to solve problems collaboratively.

90. A negotiator receives an unexpected proposal. What is generally the best response?

A. Immediately reject it

B. Reveal all weaknesses

C. Request time to consider it

D. Accept immediately

ANSWER: C

EXPLANATION: Time allows proper evaluation and avoids a weak impulsive response.

91. Which target is most likely to motivate?

A. An impossible target imposed without consultation

B. A controllable, achievable and appropriate target

C. A target unrelated to performance

D. A constantly changing target

ANSWER: B

EXPLANATION: Effective targets should be controllable and achievable and can motivate when appropriate.

92. A bonus is paid when agreed targets between employee and manager are achieved. Why can this motivate?

A. The employee perceives the target and reward as fair and linked

B. It removes all uncertainty

C. It is always intrinsic

D. Targets no longer matter

ANSWER: A

EXPLANATION: Agreed, achievable targets and linked rewards support motivation.

93. Interesting work is generally what type of reward?

A. Extrinsic

B. Intrinsic

C. Coercive

D. Financial

ANSWER: B

EXPLANATION: Interesting work arises from the work itself.

94. Salary is generally what type of reward?

A. Intrinsic

B. Extrinsic

C. Psychological only

D. Social only

ANSWER: B

EXPLANATION: Salary is externally provided.

95. A control system specifies required output standards but allows employees discretion over how to achieve them. Which control?

A. Personal centralised control

B. Clan control

C. Output control

D. No control

ANSWER: C

EXPLANATION: Output control focuses on results rather than prescribing the work method.

96. In performance management, the main focus is improving:

A. Organisational performance through effective management of individual performance

B. Only annual pay

C. Only disciplinary action

D. Only recruitment

ANSWER: A

EXPLANATION: Performance management aligns and improves individual and organisational performance.

SECTION 9 - MIXED HIGH-YIELD CIMA-STYLE TRAPS

97. A customer-facing organisation has a strong brand that competitors find difficult to imitate. The brand itself is best classified as:

A. Core competence

B. Unique resource

C. Threshold competence

D. Threshold resource

ANSWER: B

EXPLANATION: The brand is a resource that creates advantage and is hard to imitate.

98. The processes used to deploy that brand and consistently deliver exceptional service are best classified as:

A. Unique resource

B. Core competence

C. Threshold resource

D. Threshold competence

ANSWER: B

EXPLANATION: A difficult-to-imitate activity/process that creates advantage is a core competence.

99. A cinema loses customers to streaming services. Which Five Forces pressure?

A. Rivalry

B. New entrants

C. Substitutes

D. Buyer power

ANSWER: C

EXPLANATION: Streaming is a different solution satisfying the entertainment need.

100. A project has many activities but one sequence determines the earliest possible completion date. What is that sequence?

A. WBS

B. Critical path

C. Control gate

D. Resource histogram

ANSWER: B

EXPLANATION: The critical path determines project duration.

101. A stakeholder has low interest and low power. Which Mendelow strategy?

A. Manage closely

B. Keep informed

C. Keep satisfied

D. Minimal effort

ANSWER: D

EXPLANATION: Low power and low interest requires minimal effort.

102. A stakeholder has high power and high interest. Which Mendelow strategy?

A. Minimal effort

B. Keep satisfied

C. Manage closely

D. Keep informed

ANSWER: C

EXPLANATION: High/high stakeholders are key players.

103. A team has just met and members are uncertain about roles. Which Tuckman stage?

A. Forming

B. Storming

C. Norming

D. Performing

ANSWER: A

EXPLANATION: Forming is the initial orientation stage.

104. Team members challenge one another and conflict emerges over roles. Which Tuckman stage?

A. Forming

B. Storming

C. Norming

D. Performing

ANSWER: B

EXPLANATION: Storming is characterised by conflict and challenge.

105. A manager focuses heavily on employee welfare but gives little attention to task completion. Under Blake and Mouton, which style is most likely?

A. Country club

B. Team management

C. Impoverished

D. Middle of the road

ANSWER: A

EXPLANATION: Country club management is high concern for people and low concern for production.

106. A manager has little concern for both people and production. Which Blake and Mouton style?

A. Country club

B. Team management

C. Impoverished

D. Middle of the road

ANSWER: C

EXPLANATION: Impoverished management is low on both dimensions.

107. An organisation changes its management approach according to the circumstances it faces. Which approach?

A. Scientific management

B. Contingency

C. Human relations

D. Bureaucratic

ANSWER: B

EXPLANATION: Contingency theory argues that the appropriate approach depends on the situation.

108. A new competitor can enter an industry easily because start-up capital is low and there are no licences. Which pressure is likely to increase?

A. Supplier power

B. Threat of new entrants

C. Buyer power

D. Rivalry only

ANSWER: B

EXPLANATION: Low barriers make entry easier and increase the threat of entrants.

109. Which TWO are operational business-model activities?

A. Define value

B. Create value

C. Deliver value

D. Capture value

ANSWER: B, C

EXPLANATION: Creating and delivering value are operational activities.

110. Which project document defines the project, its purpose, scope and costs/benefits?

A. Project initiation document

B. Gantt chart

C. Resource histogram

D. Project quality plan

ANSWER: A

EXPLANATION: The project initiation document sets out the project's definition, scope and business case information.