Pass the CIMA CIMA Strategic P3 Questions and answers with CertsForce

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Viewing questions 41-50 out of questions
Questions # 41:

H Ltd is a company providing postal and courier services to small businesses. Customers pay a monthly or annual subscription fee to use the service, plus a very small fee for each item delivered.

A year ago, H employed a new sales team. Their remuneration is dependent on the number of new customers they sign up. Sales increased dramatically in the first six months, but now difficulties are emerging such as new customers dropping their subscription once the initial period has expired; subscriber direct debits being returned unpaid; subscribers going out of business and other similar issues.

Which of the following would be appropriate to help resolve these problems?

Options:

A.

Alter the pricing structure in order to increase the price for sending each item but decrease the subscription element of the fee.


B.

Ensure that a credit check is carried out before a subscriber is accepted.


C.

Reduce the rate of commission payable to any sales person who fails to sign up at least an agreed minimum number of customers each month.


D.

Alter the commission arrangements so that commission is payable only when the subscriber signs up for a second year.


E.

Preparing a monthly report for sales persons detailing the performance of each new customer they have signed up over the previous year.


Expert Solution
Questions # 42:

P has decided to invest in a new warehouse at a cost of $2,000,000. The discount rate of the project is 18% and the present value of the tax shield is £26,000.

What is the minimum acceptable Internal Rate of Return of the project?

Options:

A.

18%


B.

17.77%


C.

18.23%


D.

16.50%


Expert Solution
Questions # 43:

H manufactures and sells healthy dietary supplements. The company recruits individuals as part-time agents to sell its products to friends and colleagues. These agents are required to buy H's products and to resell them at a small mark-up.

For a fee, H will provide agents with training in persuasive selling techniques. Agents who pass exams at the conclusion of this training can become distributors. Distributors buy bulk quantities of H's products at a discount and can recruit their own sales agents. Those agents can also take training and can recruit agents of their own.

At what stage does H stop being a legitimate business and become a pyramid selling fraud?

Options:

A.

When it asks its agents to buy product and marketing material up front.


B.

When it offers returns on its agents' investments that seem remarkable.


C.

When it offers its agents more reward for recruiting other agents than for selling its product.


D.

When its training programmes promise to unlock the secret of selling its product.


Expert Solution
Questions # 44:

In terms of Cyber Security, which THREE of the following represent Personally Identifiable Information (Pll)?

Options:

A.

Old phone number


B.

First pet's name


C.

Position held in a charity.


D.

Sports club membership number


E.

Model of first car.


F.

Football team affiliation


Expert Solution
Questions # 45:

Which TWO of the following are likely to be consequences of a weak control environment?

Options:

A.

The Board will insist on improved controls.


B.

Mid-level Managers will request improved controls


C.

The Board will be free to focus on strategy.


D.

Poor compliance with control procedures


E.

The Board risks being poorly informed


Expert Solution
Questions # 46:

The internal audit department should always give a report at the end of its audit. This report is intended to be useful and help the company going forward. The report should always include any recommendations for improvements. Which of the following statements are true and which are false?

Question # 46


Expert Solution
Questions # 47:

TT is a jewellery manufacturer in country A It makes jewellery from precious metals and stones and sells it to shops in country A and also overseas It is the 3rd largest company in country A with a huge turnover

TT has found it very difficult to prevent staff committing fraud and last year the Board was sure that the year end inventory was lower than it should have been Gross profit was also slightly lower than expected

Which TWO of the following internal controls would be most effective in helping to reduce staff fraud within TT?

Options:

A.

Carry out inventory checks daily to make sure the correct quantity of materials is being used every day and the correct number of items are being produced


B.

Employ two more managers to watch the staff working and look for them stealing items


C.

Have a senior manager such as the Production Director to supervise the workshop at all times


D.

Install-several CCTV cameras in the workshop


E.

Perform random checks of staff bags as they leave work and ensure the staff all wear overalls provided by the company in the workshop Their own clothes must be left in lockers during working hours


Expert Solution
Questions # 48:

Which of the following is NOT a financial risk.

Options:

A.

Selling goods on credit terms.


B.

Taking out variable rate loans to finance short term investments.


C.

Sourcing raw materials overseas to manufacture goods.


D.

Global warming.


Expert Solution
Questions # 49:

A project has been evaluated on the basis that it will cost $22 million and will have a net present value of $4.3 million The project has commenced and $5 million of the $22 million has been invested. A problem has been discovered that will cost an additional $4.5 million to rectify. The $4.5 million will be payable immediately. What is the NPV of continuing with this project?

Options:

A.

-$5million


B.

-$0.2million


C.

$1million


D.

$4.8million


Expert Solution
Questions # 50:

ABC is a large supermarket chain which also has online shopping and home deliveries It has a 24/7 service which runs on a central server allowing all customers to enter new orders at any time This is a business critical service which, if not available, may lead to customers turning to alternative supermarket chains offering similar services, resulting in immediate turnover loss and possible long term customer loss.

ABC is contemplating the implementation of a hot standby facility, not only to cover for emergency disaster recovery, but also to allow for business continuity, allowing necessary maintenance and updates without service interruption.

Which of the following cybersecurity objectives is ABC concerned about in this scenario?

Options:

A.

Integrity of data


B.

Integrity of processing


C.

Availability


D.

Confidentiality


Expert Solution
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Viewing questions 41-50 out of questions