CIMA Updated E3 Exam Questions and Answers by rylee

The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.

 The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.

Which THREE of the following factors should the FD consider when he interprets your results?

Mission statements set out the purpose of an Organization to a range of stakeholders who have an interest in what the Organization does. As an employee, you have been asked to assess the effectiveness of your Organization's mission statement.

Which of the following would NOT help the effectiveness of a mission statement?

University researchers want the government of Country Y to invest in the creation of a database of information about the lives of people who have lived in the country during the past 300 years. 

Population information is based on official registers of data about individual people. This data will include the person's name, the dates they were born, the names of their parents, the names of partners if they decide to marry, the names and dates of birth of their children and, finally, the person's date of death and cause of death. In the past this information was recorded on paper by hand, but today there are an increasing number of computerised databases that record this information. This will include data about the 58 million people alive in Country Y at the moment.

Additional data may come from government questionnaires that are circulated once every 10 years and completed by every household in Country Y all on the same day of that year. 

The system is intended to help the researchers analyse demographic change but it will also be useful to people who want to identify who their ancestors were and the links between families.

What THREE obstacles will the University researchers face in developing and implementing this system?

XYZ operates a national chain of restaurants.

Which THREE of the following are external environmental drivers for XYZ?