1
CMA Entrance Exam Questions and Answers 2023
TABLE OF CONTENTS
Examination:
Strategic Management .........................................................................
Risk Management and Governance .....................................................
Performance Management ..................................................................
Performance Measurement .................................................................
Financial Management.........................................................................
Financial Reporting ..............................................................................
1
,Strategic Management
1. If economies of scale are an industry’s primary entry barrier, a new entrant’s major risk is
its inability to
a) get buyers to switch to its products.
b) access superior sources of raw materials for its products.
c) match the pace of innovation of its established rivals.
d) produce in sufficient volume to match the cost advantages of established industry
competitors.
e) ensure quality of its finished products.
2. Which of the following internal resources of a competitor is the most difficult to imitate?
a) Brand name.
b) State-of-the-art manufacturing facilities.
c) Marketing intelligence.
d) Technological know-how.
e) Capital.
3. (-) The main purpose of a company’s mission statement is to provide a context and
direction for
a) legislative lobby groups.
b) product/market/technology areas.
c) inside claimants of the company.
d) outside claimants of the company.
e) strategy formulation.
4. Speed of product development in uncertain, competitive environments characterizes
today’s competitive landscape. Which of the following organizational structures best
helps a company accelerate the product development process in order to address rapid
technological change?
a) Multidivisional
b) Matrix
c) Functional
d) Strategic Business Unit (SBU)
e) Geographic
5. (-) The process of measuring products, services and practices against the industry
leaders and striving to match their performance is called
a) Continuous improvement.
b) Best practices strategy.
c) The focus strategy, one of Porter’s competitive strategies.
d) Total quality management.
e) Benchmarking.
,3
6. (-) When demand temporarily increases, the operations manager has several
alternatives. Which of the following strategies is the LEAST DESIRABLE option for
dealing with an increase in demand?
a) Adjust the work force.
b) Plan for late deliveries to customers.
c) Schedule overtime.
d) Modify vacation schedules.
e) Build finished goods inventory to meet anticipated demand.
7. (-) Which of the following classes of products requires little effort on the part of the
customer in searching out the product, requires little need to compare alternatives in
terms of price, quality or style, and involves low psychological and financial risk?
a) Unsought
b) Tangible
c) Convenience
d) Shopping
e) Specialty
8. (-) The levelling and initial decrease in sales growth of a product takes place in which
stage of the product life cycle?
a) The decline stage
b) The introductory stage
c) The maturity stage
d) The growth stage
e) The product development stage
9. Which of the following statements would NOT form part of a mission statement?
a) Company XYZ is a globally recognized financial institution.
b) ABC Memorial Hospital provides an appropriate mix of services to the
residents of ABC region and surrounding areas.
c) BCD Company makes, distributes and sells the finest quality widgets.
d) To build the largest and most complete antique radio community site on the
Internet.
e) To provide a fair return to our investors while adhering to the highest
standards of integrity.
3
, Risk Management and Governance
10. The main purpose of an internal control system within an organization is to
a) provide timely and relevant information to the organization about its goals and
objectives.
b) safeguard the assets within the organization.
c) confirm the reliability and integrity of information within the organization.
d) ensure efficient use of resources.
e) ensure the behaviour of employees is consistent with organizational objectives and
strategies.
11. (-) The primary responsibility for preventing fraud in an organization lies with
a) management.
b) the internal auditor.
c) security personnel.
d) the audit committee of the board of directors.
e) the external auditor.
12. Which of the following is LEAST LIKELY to be detected by an internal control system?
a) Fraudulent actions by a group of employees
b) Duplicate payments to suppliers
c) Deviations from written procedures
d) Fraudulent actions by an individual employee
e) Unauthorized disbursements
13. Which of the following is an example of a control procedure?
a) Analyzing variances
b) Imposing sales quotas
c) Using standard costs in production reporting
d) Both a) and b) above
e) All of a), b) and c) above
14. Effective internal control over the purchasing of raw materials should usually include
which of the following procedures?
a) Obtaining third-party written quality and quantity reports prior to the payment for the
raw materials.
b) Determining the need for the raw materials prior to preparing the purchase order.
c) Systematic reporting of product changes which will affect raw materials.
d) Both b) and c) above.
e) All of a), b) and c) above.
CMA Entrance Exam Questions and Answers 2023
TABLE OF CONTENTS
Examination:
Strategic Management .........................................................................
Risk Management and Governance .....................................................
Performance Management ..................................................................
Performance Measurement .................................................................
Financial Management.........................................................................
Financial Reporting ..............................................................................
1
,Strategic Management
1. If economies of scale are an industry’s primary entry barrier, a new entrant’s major risk is
its inability to
a) get buyers to switch to its products.
b) access superior sources of raw materials for its products.
c) match the pace of innovation of its established rivals.
d) produce in sufficient volume to match the cost advantages of established industry
competitors.
e) ensure quality of its finished products.
2. Which of the following internal resources of a competitor is the most difficult to imitate?
a) Brand name.
b) State-of-the-art manufacturing facilities.
c) Marketing intelligence.
d) Technological know-how.
e) Capital.
3. (-) The main purpose of a company’s mission statement is to provide a context and
direction for
a) legislative lobby groups.
b) product/market/technology areas.
c) inside claimants of the company.
d) outside claimants of the company.
e) strategy formulation.
4. Speed of product development in uncertain, competitive environments characterizes
today’s competitive landscape. Which of the following organizational structures best
helps a company accelerate the product development process in order to address rapid
technological change?
a) Multidivisional
b) Matrix
c) Functional
d) Strategic Business Unit (SBU)
e) Geographic
5. (-) The process of measuring products, services and practices against the industry
leaders and striving to match their performance is called
a) Continuous improvement.
b) Best practices strategy.
c) The focus strategy, one of Porter’s competitive strategies.
d) Total quality management.
e) Benchmarking.
,3
6. (-) When demand temporarily increases, the operations manager has several
alternatives. Which of the following strategies is the LEAST DESIRABLE option for
dealing with an increase in demand?
a) Adjust the work force.
b) Plan for late deliveries to customers.
c) Schedule overtime.
d) Modify vacation schedules.
e) Build finished goods inventory to meet anticipated demand.
7. (-) Which of the following classes of products requires little effort on the part of the
customer in searching out the product, requires little need to compare alternatives in
terms of price, quality or style, and involves low psychological and financial risk?
a) Unsought
b) Tangible
c) Convenience
d) Shopping
e) Specialty
8. (-) The levelling and initial decrease in sales growth of a product takes place in which
stage of the product life cycle?
a) The decline stage
b) The introductory stage
c) The maturity stage
d) The growth stage
e) The product development stage
9. Which of the following statements would NOT form part of a mission statement?
a) Company XYZ is a globally recognized financial institution.
b) ABC Memorial Hospital provides an appropriate mix of services to the
residents of ABC region and surrounding areas.
c) BCD Company makes, distributes and sells the finest quality widgets.
d) To build the largest and most complete antique radio community site on the
Internet.
e) To provide a fair return to our investors while adhering to the highest
standards of integrity.
3
, Risk Management and Governance
10. The main purpose of an internal control system within an organization is to
a) provide timely and relevant information to the organization about its goals and
objectives.
b) safeguard the assets within the organization.
c) confirm the reliability and integrity of information within the organization.
d) ensure efficient use of resources.
e) ensure the behaviour of employees is consistent with organizational objectives and
strategies.
11. (-) The primary responsibility for preventing fraud in an organization lies with
a) management.
b) the internal auditor.
c) security personnel.
d) the audit committee of the board of directors.
e) the external auditor.
12. Which of the following is LEAST LIKELY to be detected by an internal control system?
a) Fraudulent actions by a group of employees
b) Duplicate payments to suppliers
c) Deviations from written procedures
d) Fraudulent actions by an individual employee
e) Unauthorized disbursements
13. Which of the following is an example of a control procedure?
a) Analyzing variances
b) Imposing sales quotas
c) Using standard costs in production reporting
d) Both a) and b) above
e) All of a), b) and c) above
14. Effective internal control over the purchasing of raw materials should usually include
which of the following procedures?
a) Obtaining third-party written quality and quantity reports prior to the payment for the
raw materials.
b) Determining the need for the raw materials prior to preparing the purchase order.
c) Systematic reporting of product changes which will affect raw materials.
d) Both b) and c) above.
e) All of a), b) and c) above.
