Today we have a question relating to the new 2019 syllabus for E1.
The question was:
What are the potential consequences of not completing internal Strategic Partnering?
This question relates to ‘D: Shape and structure of the finance function’ and is a slightly different version of the question in one of our free mock exams.
The correct answer was…
Contracts being signed only for the company is disagree and dispute the invoice
Strategic Partnering is often viewed as two competing companies coming together to share research costs or to form some other competitive advantage. Internal Strategic Partnering is a little different in that is it departments within the same organisations coming together. It could be the production manager checking with the finance manager that we have sufficient cashflow to take advantage of a discount if we buy in bulk. If the production manager did not check but agreed to the large order, the finance manager might be forced to say no we will not pay that invoice and you need to send the material back as the business does not have the cashflow to pay such a large invoice. The result, bad will between the two managers and bad will between the production manager and the supplier.
For more free questions use our Free CIMA Mock Exams for the 2019 syllabus use the menu above to access our little shop, at the same time you’ll have the option to upgrade to our + package which includes 50% more CIMA Mock Exam style questions, feedback and both revision and timed assessment modes plus much more.