Question 1
Arrange the stages of the product life-cycle in the correct order.
Answer is in the explanation below.
Free E1 – Managing Finance in a Digital World Practice Test Question
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Question 2
An individual works for Organisation A. They are responsible for collating financial information from all the local County primary schools in order to report budgetary requirements for the next financial year.
An individual works for Organisation B. They are responsible for collating financial information from all the local charity shops in order to report donation items and items sold.
An individual works for Organisation C. They are responsible for counting and recording raw materials stock, work in progress and finished goods stock on a monthly basis for the managers to report on rates of stock wastage and pilferage at the monthly board meeting.
For each of the organisations above, match them with the relevant sector below.
Answer is in the explanation below.
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Question 3
T is employed as an HR manager for a chain of hotels. A large part of her role is to assist the HR director with forecasting personnel requirements for the next one, three and six month periods respectively.
Which TWO of the following factors should be taken into consideration when forecasting personnel requirements?
Select all that apply, then click Submit answer.
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Staff approaching retirement age
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Absence and sickness rates
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Changes to the minimum wage legislation
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Employee turnover
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Question 4
XY is a small software development company. Which of the following are most likely to assist the organisation in facilitating innovation?
Select ALL that apply.
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Organisational structure
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Organisational culture
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Leadership of the organisation
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The planning processes
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The organisational targets
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The budgeting processes
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Question 5
Porter's Value Chain was developed to determine whether a firm's activities contribute towards it's competitive advantage. E is the new Chief Executive of an organisation which manufactures and distributes hand made wooden furniture. His initial observations are that sometimes the workflow through the organisation can be a little disjointed and it is unclear from overall results which areas contribute to profit and quality and which do not. Using Porter's Value Chain model, identify which THREE of the options below are Primary activities.
Select all that apply, then click Submit answer.
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Inbound logistics
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Marketing and sales
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Operations
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Human resource management
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Technology
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Procurement
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Question 6
Which TWO of the following are activities associated with setting up a new IT system?
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Service support
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Database management
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Design and development
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Testing
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Question 7
Which of the following are associated with the mission of an organisation?
Select ALL that apply.
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Purpose of the organisation
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Strategy of the organisation
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Culture of the organisation
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Product marketing strategy of the organisation
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Service level of the organisation
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Staff perception of the organisation
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Question 8
Appraisal systems involve the collection of feedback on an individual's performance from a range of sources. Which of the following sources apply to 180-degree appraisal?
Select THREE sources that apply.
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The individual's supervisor and the individual
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The individual and his peers
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The individual's supervisor and his peers
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The individual and the customers he deals with
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The individual's supervisor and the customers the individual deals with
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The individual's peers and the customers they deal with
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Question 9
S is employed within the accounting function of a small company. Due to the size of the company, there are not enough resources for separate accounting functions so S is responsible for both management and financial accounting tasks. As the company is so small there is no requirement for audit. However it does make use of the services of an external certified accountant for statutory accounting and taxation services. According to Mintzberg, in which part of the organisation does the external accountant belong?
Select an option, then click Submit answer.
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Strategic apex
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Support staff
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Technostructure
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Operating core
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Question 10
An electrical goods company produces colourful brochures for customers.
Which element of the marketing mix does this represent?
Select an option, then click Submit answer.
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Physical evidence
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Product
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Price
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Packaging
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Question 11
Company P has revised its corporate and marketing objectives following a recent expansion in the primary market within which it operates. The next step is to devise an appropriate marketing strategy. Company P has conducted primary and secondary market research and this information is in the process of being analysed to establish the needs of the subjects. At which stage of the marketing strategy process is Company P?
Select an option, then click Submit answer.
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Segmentation
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Marketing mix
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Targeting
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Positioning
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Question 12
Company V has traditionally sold children's toys from retail outlets. It is now exploring online retailing, or e-commerce, to expand its customer base. Which channel of distribution is Company V expanding into?
Select an option, then click Submit answer.
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Level zero channel
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Level one channel
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Level two channel
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Multiple level channel
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Question 13
An organisation has grown in size over the last 6 months and it wishes to improve communication with its employees. Examples of information to share include company policies, human resource information and notices to employees.
Which type of system should the company adopt?
Select an option, then click Submit answer.
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Internet
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Intranet
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Extranet
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Video conferencing
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Question 14
F manages a portfolio of clients, as do his colleagues. All income that is earned by them is pooled to cover costs and overheads and any remaining profits are split according to an agreed formula. F and his colleagues have joint and several liability in relation to the work they carry out on the organisation's behalf. Which of the organisation types listed below best describes the organisation that F works for?
Select an option, then click Submit answer.
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Sole-trader
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Company
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Partnership
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Multinational
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Question 15
Which of the following is a disadvantage of using the internet, (E-marketing), to sell products?
Select an option, then click Submit answer.
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Set-up and maintenance costs
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Enables close customer relationships
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The organisational size is irrelevant
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It provides sophisticated segmentation opportunities
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— your own AI account, opens inside the appAbout the E1 Free Practice Test
Thinking of taking the Managing Finance in a Digital World (E1) exam? This free Cima practice test is the place to start. The 15 questions are a free sample of the full Study4Pass practice set of 209 questions, so you can check your level before you commit to the real exam. The free sample includes 7 single-answer, 6 multiple-answer and 2 drag-and-drop questions — the same mix of formats you will meet in the full set. Questions are spread across the areas that matter most on the real exam: Enterprise Operations, Financial Management, Risk Management and Business Analysis. The CIMA E1 exam is the first of three exams in the CIMA Professional Qualification.
The CIMA E1 Exam is targeted towards students who are studying for the CIMA Professional Qualification in Management Accounting. In order to sit for the CIMA E1 exam, you must have completed the CIMA Operational Level, which includes the following exams: F1, P1, and E2.
- Certification: Managing Finance in a Digital World (E1)
- Vendor: Cima
- Free on this page: 15 practice questions with answers and explanations
- Full practice set: 209 questions
Treat this sample as a diagnostic. Answer honestly, check the explanation after every question, and note which topics feel shaky. A short, focused review of those topics is worth more than re-reading everything — and the full set lets you drill them topic by topic.
A good way to use this page: take the whole sample in one sitting, then go back over every explanation with fresh eyes. Mark the topics that felt uncertain, not just the ones you got wrong — uncertain answers are unmarked risk on the real exam. One or two focused passes like this usually move a score more than days of passive reading.
Inside the full E1 practice set:
- All 209 questions with answers and explanations
- Timed Exam Simulation that mirrors the real exam pressure
- Topic Training to drill one domain at a time
- Ask AI for More Explanation on every question
- Flag questions and review them before you finish
How to use this E1 free practice test
Answer a question, then check the result to see the correct answer and the explanation behind it. Work at your own pace — there is no timer and no signup. Stuck on a concept? This is an AI-Enabled practice test: use Ask AI on any question and get the underlying concept explained in plain words, so you learn the reasoning instead of memorizing answers. When the free sample feels comfortable, the full set of 209 questions adds timed Exam Simulation, topic-by-topic training, and flagged-question review — the closest thing to exam day you can get before the real thing.
What to study for each E1 domain
- Enterprise Operations — This section focuses on the operations of an enterprise, including the management of resources, processes, and activities.
- Financial Management — This section covers the financial management of an enterprise, including financial planning, budgeting, forecasting, and financial analysis.
- Risk Management — This section covers the various types of risks that an enterprise may face, including operational, financial, legal, and compliance risks.
- Business Analysis — This section covers the analysis of an enterprise’s business operations and performance.
- Strategy and Performance Management — This section covers the development and implementation of strategies that will help an enterprise
E1 practice test — quick questions
Is this E1 practice test free?
Yes. Every question on this page — all 15 of them — is free to use, and you never need to create an account to try them.
How many questions are in the full E1 set?
The full Study4Pass set for E1 has 209 practice questions. This page gives you 15 of them free so you can judge the quality and difficulty first.
Does the free test show the answers?
Yes. Check any question to reveal the correct answer and its explanation, and use Ask AI whenever you want the underlying concept explained step by step.
Is this the real E1 exam?
No — these are practice questions built to match the E1 domains and difficulty level, so you can prepare for the real exam with confidence.