Pass the CIMA CIMA Strategic P3 Questions and answers with CertsForce

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Viewing questions 31-40 out of questions
Questions # 31:

CDE an online ticket sales agent, has unwittingly become an accomplice in cyber crime and is suffering attacks on its own business as a result CDE's website was poorly designed and cyber-attackers have managed to inject the site with malware, so that it collects all of CDE's customer log-in information and enables the cyber-attackers to retrieve it.

The cyber-attackers subsequently use this information to set up Botnet agents in the customers' devices which are then used in a Distributed Denial of Service (DDoS) attack whenever very popular tickets are being placed on sale such as international football matches.

The cyber-attackers secure access to a single portal on the site and buy multiple tickets for subsequent sale on the black market while the DDoS causes all other portals to be overloaded preventing real fans acquiring the tickets at face value.

Which TWO of the following apply in this scenario?

Options:

A.

CDE customers will turn to other ticket sources for their tickets


B.

CDE is likely to face significant fines for the breach.


C.

CDE is likely to lose the ticket franchise for international football events


D.

CDE will need to implement a new firewall to prevent this type of attack.


E.

CDE will remain just as profitable selling to the black market as to real fans


Expert Solution
Questions # 32:

Which of the following summarises Purchasing Power Parity Theory (PPPT)?

Options:

A.

Government intervention cannot affect the inevitable rise or fall of its currency in the short-term.


B.

The difference between the spot and the forward exchange rates is equal to the differential between the inflation rates in the two countries.


C.

PPPT predicts that the country with the lower inflation rate will see the currency devalue accordingly.


D.

The difference between the interest rates in the two countries is equal to the differential between the spot and the forward exchange rate for the currency in the two countries.


Expert Solution
Questions # 33:

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 following features are most likely to meet this objective?

Options:

A.

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


B.

A 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.


C.

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


D.

Ensuring that all medical 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.


E.

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


Expert Solution
Questions # 34:

DFG's call centre budgets four minutes for its operators to deal with a customer's enquiry and conclude the call. Team leaders are evaluated on the basis of the average call length.

Simone is a team leader. Her team's average call length is five minutes and 30 seconds. Simone accepts full responsibility. She encourages her team members to check that the customer is satisfied before concluding the call.

On investigation, it was discovered that 2% of the customers who dealt with Simone's team had to call DFG again within seven days. Other teams had an average of 25% of customers call back within seven days because their first call had not fully resolved their problem.

Which of the following statements are true?

Options:

A.

The use of average call length may be leading to dysfunctional behaviour.


B.

Simone is in breach of call centre policy.


C.

It would be better to evaluate team leaders on the basis of multiple criteria.


D.

Team leaders should be responsible for setting policy on performance measurement within the call centre.


E.

Average call length should be replaced with the average rate of return calls as the primary performance measure for team leaders.


Expert Solution
Questions # 35:

YY is a company which generates electricity from alternative energy sources It has just begun constructing a wind farm near a well-known beauty spot The protect has been controversial as campaigners say it will be noisy and unsightly.

The campaigners took legal action but lost the case Some of them have started a campaign of direct action against YY and are physically blocking roads leading to the site and attempting to intimidate YY's staff

YY has hired a security company to help it to protect its staff

Which of the following statements are view in relation to the ethics of this scenario''

Select ALL that apply.

Options:

A.

YY is within its rights to hire the security firm because it has duty of care to its employees


B.

The security firm must take care not to use more force against the protestors than is absolutely necessary.


C.

YY no longer has any duty of care to the protestors since their actions are illegal because they lost their court case


D.

The generation of electricity from clean renewable and sustainable sources is too important for the protestors' concerns to be considered


E.

Since the protestors have already lost their court case they would no longer be ethically justified in engaging in political lobbying to try to get the government to change the law in this area


Expert Solution
Questions # 36:

Select the most appropriate level of responsibility for managing each of the following risks.

Question # 36


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Questions # 37:

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.

What are the limitations of an internal control system in Rio's business?

Options:

A.

Internal controls are only suitable for large businesses.


B.

Employees could ignore the internal controls.


C.

If Rio does not support the internal control system then the controls may not be adhered to.


D.

Internal controls may slow down the speed with which the architects can respond to enquiries.


E.

Internal controls will usually mean hiring more staff.


Expert Solution
Questions # 38:

You have just been employed as a management accountant in a small business with an annual turnover of $0.5 million.

You have a wide range of duties because the business is small.

Which of the following is an ethical risk?

Options:

A.

Being asked to buy very small gifts for key clients.


B.

Being asked to work weekends, playing golf with clients.


C.

Being asked to work weekends, taking clients to night clubs making sure they have as much alcoholic drink as they want so that they will sign contracts.


D.

Being asked to work weekends working out tenders for new contracts.


Expert Solution
Questions # 39:

UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products.

One of the factors that is being considered in a stress test requested by UJK's Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts for a significant proportion of the overall manufacturing cost of UJK's products

Which of the following are correct?

Options:

A.

The motor manufacturer should be contacted and told that a substantial increase in selling prices would have a drastic impact on UJK


B.

The possibility of an increase in selling prices due to increased costs should be noted in the stress test report


C.

UJK should estimate the impact on demand of increasing selling prices to pass on the increased cost of the motors.


D.

The impact of absorbing the increased cost of motors on UJK's profits should be calculated.


E.

UJK should identify an alternative vendor of suitable motors as part of its stress test


Expert Solution
Questions # 40:

A's directors do not believe that they always get value for money from their investment in capital projects. Over the past decade the company has invested in 55 projects that have cost more than $1m. They are considering introducing a system of post completion audit to see if this will help them to understand any problems they have had with projects in the past. They hope to use the results of the post completion audits to significantly improve the results of their capital investments

State whether you agree or disagree with the points raised by A's directors.

Question # 40


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