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Exam Code: E1
Exam Name: Managing Finance in a Digital World
Vendor: CIMA

60 Questions & Answers
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NEW QUESTION: 1

A. Option B
B. Option C
C. Option D
D. Option A
Answer: B
Explanation:
References: https://technet.microsoft.com/en-us/library/hh290675(v=ws.10).aspx

NEW QUESTION: 2


Answer:
Explanation:

Explanation


NEW QUESTION: 3
Among the several randomly access preambles of LTE, which format is suitable for a wide coverage area with a radius of 80 km?
A. Format 2
B. Format 3
C. Format 0
D. Format 1
Answer: A

NEW QUESTION: 4
What is the primary disadvantage of using return on investment (ROI) rather than residual income (RI) to
evaluate the performance of investment center managers?
A. ROI does not reflect all economic gains.
B. ROI may lead to rejecting projects that yield positive cash flows.
C. ROI is a percentage, while RI is a dollar amount.
D. ROI does not necessarily reflect the company's cost of capital.
Answer: B
Explanation:
Choice "b" is correct. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows. Profitable investment center managers might be reluctant to invest
in projects that might lower their ROI (especially if their bonuses are based only on their investment
center's ROI), even though those projects might generate positive cash flows for the company as a whole.
This characteristic is often known as the "disincentive to invest."
Choice "a" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI is a percentage and RI is a dollar amount. The fact that
one is a percentage and one is a dollar amount might make them a little harder to interpret, but this
interpretation difficulty would certainly not seem to be the "primary" disadvantage.
Choice "c" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI does not necessarily reflect the cost of capital.
Choice "d" is incorrect. The primary disadvantage of using return on investment (ROI) rather than residual
income (RI) to evaluate the performance of investment center managers is that ROI may lead to rejecting
projects that yield positive cash flows, not that ROI does not reflect all economic gains.


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