CIMA CIMAPRA19-P03-1 Exam Questions Instant Access

Question 1

DFG is the largest bridge-building company in its home country, H. DFG works exclusively for thegovernment ofcountry H and thegovernment awards DFG 80% of the contracts to build new bridges.

DFG's directors are considering using thebigdata approach to identify opportunities to increase sales revenues and profit.

Which of the following statements are true?

ABig data has the potential to identify ways in which DFG can reduce construction costs.

BDFG should supplement its existing databases in order to enhance the benefit from big data.

CThe big data approach may help DFG to price contract bids more accurately.

DBig data has the potential to identify ways in which DFG can increase sales.

EIt would be unethical for DFG to use big data in order to compete even more effectively with its rivals.

Answer : A, B, C

Question 2

Khasseveralsubsidiarycompanies.ThedirectorsofK'ssubsidiariesarepaidanannualbonus basedupontheirparticularsubsidiary'sreportedprofits.

The directors of one of K's subsidiaries are considering the choice between two models of a machine.

Which of the following is most likely to explain the decision to choosemodelXovermodel Y?

AModel X has a better combination of investment and running costs.

BModel X is the less risky investment.

CInvesting in model X will mean the subsidiary will show a higher profit.

DInvesting in model X will lead to a higher share price.

Answer : C

Question 3

You are in process of compiling ariskregister for P, a company whichmaintains railway tracks.This helps prevent accidents and ensures the trains are not disrupted due to problems with the track.

Which of the following statements are valid?

AA properly compiled risk register will identify all the risks to which P could possibly be exposed.

BA risk register should profile each risk in terms of probability and consequence.

CA risk register should concern itself with only the direct consequences of each risk such as injury to passengers and ignore indirect risks, such as re-routing trains due to an accident.

DThe risk register for P should be updated frequently: for example, every two weeks.

EThe risk register should specify the individual, or group of individuals, responsible for the management of each risk.

Answer : B, E

Question 4

A publicly funded hospital has put various features in place in an attempt to improve strategic control and create an improved control environment.

Which TWO of the followingfeatures are most likely to meet this objective?

AAn Audit Committee consisting of five independent persons with expertise in finance, human resources, and medicine.

BA strict policy of capping the maximum salary payable to any employee at 110% of the average earned by that category of employee in the country in which the hospital is located.

CThe setting up of a Risk Management Committee to examine the strategic risks applicable to the entity and to formally report on a quarterly basis.

DEnsuring that allmedical staff are aware that their first priority should be to discharge patients as quickly as possible at all times so as to minimise wasting hospital resources.

EEnsuring that the Head of Internal Audit examines and authorises all expense claims by hospital staff.

Answer : A, C

Question 5

Passwords are frequently used to control access to computer systems.

Which of the following characteristics should a password have in order to make it effective?

APasswords should be short words or names that users will easily remember.

BPasswords should contain 20 characters or more.

CPasswords should be changed on a regular basis.

DThe strength of a password is increased by using upper and lower case and including numerals.

EPasswords should be written down in a secret place.

FPasswords should never be shared.

Answer : C, D, F

Question 6

KLtdisan on-line travel agency specialising in budget package holidays to a small number of popular locations. The holidays that it sells are made up of a "package" of flights, hotel accommodation and food. K Ltd's Finance Director is concerned that the company'sscope of operation is too narrow and wishesto diversify.

IdentifyTWOactions that K Ltdshould take immediately.

ASet up a number of activity holidays; adventure, sports and trekking for example.

BBulk book cruise accommodation and create a special package deal for retired couples.

CExpand the number of locations it currently serves.

DRe-image the locations it currently serves to make them more exotic and family friendly.

EReview the customer base looking at feedback, repeat sales and single visit statistics.

FEngage market researchers to look at future trends in holiday requirements.

Answer : E, F

Question 7

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

AThe shares have more unsystematic risk than the stock market average.

BThe shares have more systematic risk than the stock market average.

CThe shares have more total risk than the stock market average.

DThe shares have less unsystematic risk than the stock market average.

Answer : B

CIMA P3 Risk Management (Online) CIMAPRA19-P03-1 Exam Questions