Learn with IMA : CMA-Strategic-Financial-Management training material for 100% pass

Updated: Jun 22, 2026

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IMA CMA Part 2: Strategic Financial Management Sample Questions:

1. A company is considering a capital project that includes the purchase of a new machine costing $100,000. The machines estimated useful life is five years with no salvage value. The annual operating cash inflows from the project are shown below.
Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?

A) $20,000
B) $36,000
C) $16,000
D) $32,000


2. In an Enterprise Risk Management environment, which one of the following is the best example of risk sharing?

A) Reallocating capital among operating units
B) Establishing operational limits
C) Outsourcing business processes
D) Self-insuring against loss


3. Employee performance review and development systems must be fully aligned with the requirements for ethical conduct Ethical expectations should be included in

A) job descriptions only
B) competencies and job descriptions only
C) compliances, job descriptions and objectives
D) competencies, only


4. Essentials inc. operates two segments. Segment A and Segment B information about the revenues and costs for Essentials tot the previous year (by segment) is shown below The above analysis shows that Segment A is not profitable if Segment A is dropped, the revenues associated with the account will be lost and the related variable costs win be eliminated Also, the space freed by this product line will be rented for $40.000. The operating profit (loss) after dropping Segment A will be

A) $50.000
B) ($35,000)
C) $5,000
D) $90.000


5. As the number of stocks in a portfolio increases, unsystematic risk

A) decreases and systematic risk does not change
B) increases, and systematic risk does not change
C) increases, and systematic risk increases
D) decreases and systematic risk decreases


Solutions:

Question # 1
Answer: B
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: A

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