Cima Verb Level Hierarchy

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CIMAverbhierarchy strategiclevelexams
Chapter learning objectives
CIMA VERB HIERARCHY CIMAplacegreatimportanceonthechoiceofverbsinexam questionrequirements.Itisthuscriticalthatyouanswerthequestion accordingtothedefinitionoftheverbused.

CIMA verb hierarchy - strategic level exams

1CIMA verb hierarchy strategic level


Instrategiclevelexamsyouwillmainlymeetverbsfromlevels3,4and5. Examinershavecommentedonmanyoccasionsthattheyaskalevel5verb andgetalevel2response.Itisvitalthatthehigherlevelverbsare understoodandrespondedto.Veryoccasionallyyouwillalsoseelevel1 and2verbsbuttheseshouldnotaccountformorethan510%ofthemarks intotal. Level 3 APPLICATION Howyouareexpectedtoapplyyourknowledge VERBS USED Apply Calculate DEFINITION Puttopracticaluse. Ascertainorreckonmathematically.

Demonstrate Provewithcertaintyorexhibitbypracticalmeans. Prepare Reconcile Solve Tabulate Makeorgetreadyforuse. Makeorproveconsistent/compatible. Findananswerto. Arrangeinatable.

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Level 4 ANALYSIS Howyouareexpectedtoanalysethedetailofwhatyouhavelearned. VERBS USED Analyse Categorise Compare and contrast Construct Discuss Interpret Prioritise Produce DEFINITION Examineindetailthestructureof. Placeintoadefinedclassordivision. Showthesimilaritiesand/ordifferencesbetween. Builduporcompile. Examineindetailbyargument. Translateintointelligibleorfamiliarterms. Placeinorderofpriorityorsequenceforaction. Createorbringintoexistence.

Level 5 EVALUATION Howyouareexpectedtouseyourlearningtoevaluate,makedecisionsor recommendations. VERBS USED Advise Evaluate DEFINITION Counsel,informornotify. Appraiseorassessthevalueof.

Recommend Proposeacourseofaction.

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CIMA verb hierarchy - strategic level exams

2Further guidance on strategic level verbs that cause confusion


Verbsthatcausestudentsmostconfusionatthislevelareasfollows: Level 3 verbs

The verb "to apply" Giventhatalllevel3verbsinvolveapplication,theverb"apply"israre intherealexam.Insteadoneoftheothermorespecificverbsisused instead.

The verb "to reconcile" Thisisanumericalrequirementandusuallyinvolvesstartingwithoneof thefigures,adjustingitandendingupwiththeother. Forexample,inabankreconciliationyoustartwiththerecordedcash atbankfigure,adjustitforunpresentedcheques,etc,and(hopefully!) endupwiththestatedbalanceinthecash"Taccount".

The verb "to demonstrate" Theverb"todemonstrate"canbeusedintwomainways. Firstlyitcouldmeantoprovethatagivenstatementistrueorconsistent withcircumstancesgiven.Forexample,theFinanceDirectormayhave statedinthequestionthatthecompanywillnotexceeditsoverdraftlimit inthenextsixmonths.Therequirementthenasksyoutodemonstrate thattheDirectoriswrong.Youcoulddothisbypreparingacashflow forecastforthenextsixmonths. Secondlyyoucouldbeaskedtodemonstratehowastatedmodel, framework,techniqueortheorycould be usedintheparticular scenariotoachieveaspecificresultforexample,howaprobability matrixcouldbeusedtomakeaproductiondecision.Ensureinsuch questionsthatyoudonotmerelydescribethemodelbutuseitto generatethedesiredoutcome.

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Level 4 verbs

The verb "to analyse" Toanalysesomethingistoexamineitindetailinordertodiscoverits meaningoressentialfeatures.Thiswillusuallyinvolvebreakingthe scenariodownandlookingatthefinedetail,possiblywithadditional calculations,andthensteppingbacktoseethebiggerpicturetoidentify anythemestosupportconclusions. Forexample,ifaskedtoanalyseasetoffinancialstatements,thenthe endresultwillbeasetofstatementsabouttheperformanceofthe businesswithsupportingevidence.Thiscouldinvolvethefollowing: (1) Youcouldbreakdownyouranalysisintoareasofprofitability, liquidity,gearingandsoon. (2) Undereachheadinglookatkeyfiguresinthefinancialstatements, identifyingtrends(e.g.salesgrowth)andcalculatingsupporting ratios(e.g.margins). (3) Trytoexplainwhatthefiguresmeanandwhytheyhaveoccurred (e.g.whyhastheoperatingmarginfallen?) (4) Startconsideringthebiggerpicturearetheratiospresentinga consistentmessageordotheycontradicteachother?Canyou identifycommoncauses? (5) Finallyyouwouldthenseektopullallthisinformationtogetherand interpretittomakesomehigherlevelcommentsaboutoverall performance. Themainerrorstudentsmakeisthattheyfailtodrawoutanythemes andconclusionsandsimplypresentthemarkerwithacollectionof uninterpreted,unexplainedfactsandfigures.

The verb "to discuss" Todiscusssomethingisverysimilartoanalysingit,exceptthat discussionusuallyinvolvestwoormoredifferentviewpointsor argumentsasthecontext,ratherthanasetoffigures,say.Todiscuss viewpointswillinvolvelookingattheirunderlyingarguments,examining themcritically,tryingtoassesswhetheroneargumentismore persuasivethantheotherandthenseekingtoreachaconclusion. Forexample,ifaskedtodiscusswhetheraparticulartechniquecould beusedbyacompany,youwouldexaminetheargumentsforand against,makingreferencetothespecificcircumstancesinthequestion, andseektoconclude.

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CIMA verb hierarchy - strategic level exams

The verb "to prioritise" Toprioritiseistoplaceobjectsinanorder.Thekeyissuehereisto decideuponthecriteriatousetoperformtheordering.Forexample, prioritisingtheexternalthreatsfacingafirmcouldbedoneby consideringthescaleoffinancialconsequences,immediacy, implicationsfortheunderlyingbusinessmodelandsoon. Themainmistakestudentsmakeisthattheyfailtojustifytheir prioritisationwhyisthisthemostimportantissue?

Level 5 verbs

The verb "to evaluate" Toevaluatesomethingistoassessitwithaviewtoplacingavalueon it.Inmanyrespects"evaluate"shouldbeseenasahigherlevelversion of"analyse"and"discuss"andcouldincludequalitativeandquantitative factorswithinyourcriteria.Yourresultingargumentswillneedtobe prioritisedandweighedagainsteachothertoformaconclusion. Forexample,supposeyouareaskedtoevaluateaproposedstrategy inpaperE3.Atitssimplestyouranswercouldcontainaseriesof argumentsforandagainstthestrategy.Eachargumentshouldbe discussedtoassessitsimportance.Theargumentscanthenbe weighedupagainsteachothertoformaconclusion.Youarethus evaluatingthefactorswithineachargumentandthenevaluatingthe argumentsagainsteachother. Withsuchquestionsmanystudentsstruggletogenerateenoughpoints orarguments.Partofthesolutionistoproducementalchecklistswhen studyingthepaperconcerned.Thesegivecriteriatouseforvaluingthe matterathand.Withtheaboveexampleonstrategyevaluation,criteria couldincludeanyofthefollowing: Arethereanyusefulcalculationse.g.NPV,impactonprofit? Doesthestrategyresolveanymajorthreatsfacedbythefirm? Doesthestrategycapitaliseonthefirm'sstrengthsordo weaknessesneedresolvingfirst? Doesthestrategyenhancethefirm'scompetitivestrategy? Doesthestrategyleadtoabetter"fit"withtheenvironment? Whataretherisksandaretheyacceptable? Whataretheimplicationsfordifferentstakeholdersandwoulditbe acceptabletothem? Whataretheresourceimplicationshowfeasibleisthestrategy?

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Useofsuchachecklistwillensureyouhaveenoughpointstopass. Insomequestionsyoumayhavetodomorepreliminaryworkbefore youcanevaluate.Forexample,ifaskedtoevaluateafirm'sapproach tochangemanagementyouwouldstartbyidentifyingwhattypeof approachtheyaretaking(referencingtodifferentmodelsofchange management)beforeyoucanevaluateit.

The differences between the verbs "to evaluate", "to advise" and "to recommend" Allthreelevel5verbsinvolveamixtureofidentifyingrelevantissues, analysingthem,evaluatingthemandthenfinishingwithsomeformof conclusion.Somewritersseethisasathreestepapproach: (1) What?Identifyrelevantissues. (2) So what?Whyaretheissuesrelevant?Howsignificantarethey? (3) What now?Whatresponseisrequiredbythefirmbeing considered? Thedifferencebetweenthelevel5verbsliesinwherethemain emphasisisinthesethreesteps.With"advise"and"recommend"the examinerwillbelookingformoredetailinstep3.Recommendationsin particularcouldinvolveformulatingaplanofactionthatincludesboth shortandlongertermaspects.

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CIMA verb hierarchy - strategic level exams

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