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CIMA Strategic Level Case Study Exam Dumps P3 Exam for Full Questions - Exam Study Guide
NEW QUESTION 22
Y plc, a pharmaceutical company, has dealt with a number of risks in the manner indicated below.
Use the TARA framework to classify each of Y plc's responses.
Answer:
Explanation:
NEW QUESTION 23
B uses a balanced scorecard to monitor the performance of its divisions.
Classify each of the following decisions taken by a division's management team as either commercially sound or dysfunctional.
Answer:
Explanation:
NEW QUESTION 24
Which risks should be given the highest priority?
- A. Risks which have a low impact and a low likelihood of arising.
- B. Risks which have a high impact and have a low likelihood of arising.
- C. Risks which have a high impact and which may arise occasionally.
- D. Risks which have a low impact but which arise frequently.
Answer: C
NEW QUESTION 25
GHY is a listed company. Tom is GHY's CEO and Peter is its non-executive Chair of the Board. Tom and Peter both have substantial relevant business and industrial experience and both are believed to have considerable integrity. Tom and Peter quickly developed a good working relationship after Peter's appointment. They have become close friends.
Tom briefs Peter on every aspect of the business. Tom and Peter jointly agree the agenda for every board meeting and both agree on the manner in which matters will be presented to the board.
Taking account of the principles of good corporate governance, which of the following statements is correct?
- A. Since the non-executive chair clearly has a significant role within this company there is little danger that any individual will become excessively dominant.
- B. The relationship between Peter and Tom may have a detrimental effect on company decision making as the Board is not always being informed about matters in an unbiased manner.
- C. Non-contentious board meetings show how well Tom and Peter are running the company and shows that the management is cohesive.
- D. It is entirely appropriate that Tom and Peter have this kind of relationship and both are acting in the best interests of the company.
Answer: B
NEW QUESTION 26
The acronym VPN stands for.
- A. Virtual Private Network
- B. Virtual Personal Network
- C. Verified Private Network
- D. Very Personal Network
Answer: A
NEW QUESTION 27
M plc is an IT company that bids for large contracts to sell computer systems and also to service existing systems. M plc's senior management has always set budgets which are hard to achieve and have made no allowances for the recession.
The economy has improved and M plc's senior managers have made the budget even more optimistic. The budgeted sales target has been increased by 40%.
In the past, sales staff have not tried to achieve the budget sales because it was generally believed that the targets were impossible to reach.
M plc has recently appointed a new Sales Director who has decided that sales staff will be dismissed if they fail to meet sales targets for three successive months. He is also looking for higher sales margins than were achieved before.
What are the likely consequences of the new Sales Director's policy?
- A. Sales staff will encroach on other sales staff territories to get more work.
- B. Sales staff will feel more settled and secure in their jobs.
- C. Sales staff will tender for riskier contracts.
- D. Sales staff will look for new jobs.
- E. Sales staff will be happier in their jobs.
Answer: A,C,D
NEW QUESTION 28
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?
- A. 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.
- 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. An Audit Committee consisting of five independent persons with expertise in finance, human resources, and medicine.
- 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.
Answer: A,C
NEW QUESTION 29
Select the correct ethical principle that corresponds to each ethical dilemma described.
Answer:
Explanation:
NEW QUESTION 30
HJK is a publishing company that employs several hundred staff A member of the company's IT Security Department contacted 30 members of HJK's staff selected at random, and told each one that his or her computer appeared to be infected with a virus The staff members were asked to provide their login details and corporate passwords so that IT Security could remove the virus remotely A total of six members of staff provided this information.
Which TWO of the following statements are correct?
- A. HJK's response should be limited to briefing the six staff members on their error and ensuring that they change their passwords.
- B. It was acceptable for the staff to surrender their details because the request had actually been made by members of HJK's IT Security Department.
- C. HJK's entire staff should be informed of the investigation and of the disappointing fact that six members of staff handed over their logins and passwords
- D. The investigation should be repeated in the future on a different sample of staff, using other reasons for asking for logins and passwords
- E. It was unethical for HJK's IT Security Department to contact staff in this manner, lying about the suspected presence of a virus in order to provoke a response.
Answer: C,D
NEW QUESTION 31
With regard to the internal audit department, which TWO of the following statements are correct?
- A. The internal audit department should co-opt a manager from the department it is auditing onto the team in order to ensure it can follow the processes applied in that department.
- B. The internal audit department should report directly to the board of directors, especially if it suspects a director has circumvented any internal controls.
- C. The internal audit department should follow a planned work schedule which is reviewed at least annually.
- D. The internal audit department should make recommendations on actions to be taken following any engagement within a department.
- E. The internal audit department should make recommendations on how to improve the control systems within a department following any engagement within that department.
Answer: C,D
NEW QUESTION 32
DFG's home currency is the D$.
DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following:
* Inflation has been running at 5% in DFG's home country and 8% in country L
* Interest rates are 7% in DFG's home country and 11% in country L
* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196 Which of the following statements is consistent with these figures?
- A. Interest rates are expected to continue unchanged, but country L's inflation rate will decrease in proportion to the inflation rate in DFG's home country.
- B. Country L's interest rate is expected to increase relative to that of DFG's home country and inflation rates are expected to continue unchanged.
- C. Interest rates are expected to continue unchanged, but country L's inflation rate will increase in proportion to the inflation rate in DFG's home country.
- D. Country L's interest rate is expected to decline relative to that of DFG's home country and inflation rates are expected to continue unchanged.
Answer: C
NEW QUESTION 33
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?
- A. CDE customers will turn to other ticket sources for their tickets
- B. CDE is likely to lose the ticket franchise for international football events
- C. CDE will need to implement a new firewall to prevent this type of attack.
- D. CDE will remain just as profitable selling to the black market as to real fans
- E. CDE is likely to face significant fines for the breach.
Answer: C,E
NEW QUESTION 34
A government department is conducting a value for money audit on a school.
The school's pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.
Answer:
Explanation:
NEW QUESTION 35
JHG manufactures inexpensive cars that compete largely on price Its cars have very basic equipment and small but economical engines JHG's Board is considering launching a luxury brand of cars that will be far better equipped, more comfortable and have much better performance Which THREE of the following would be relevant factors to incorporate into the stress testing of this new strategy to create a luxury brand?
- A. Sales of JHG's existing range of cars
- B. Increased tax on vehicle emissions
- C. Reductions m motorway speed limits
- D. The need for consumer research
- E. The cost of designing new cars.
- F. Potential changes in interest rates.
Answer: A,B,E
NEW QUESTION 36
A firewall in a computer suite is designed to
- A. prevent a disaster from occurring by limiting the spread of any fire
- B. prevent viruses from infecting the network
- C. prevent unauthorised traffic into defined areas of the network
- D. prevent the overloading of the network by unauthorised traffic
Answer: B
NEW QUESTION 37
X Company M has lost 25% of its revenue in the last three months due to bad debts. One of the receivables written off was from a long standing customer and the other three were from new customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?
- A. Credit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.
- B. Two sales staff must authorise new customers and sign a form stating that they have done so.
- C. A credit check should be carried out on each new customer.
- D. As soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced.
- E. An aged analysis of customer balances must be reviewed every month.
Answer: C,D,E
NEW QUESTION 38
Company directors who exercise executive share options generally resell the shares immediately, rather than holding them Which of the following best explains this behavior?
- A. Shareholders become nervous when the directors hold shares
- B. The shares are out of the money at the exercise date
- C. The directors receive a risk-free gain
- D. It is a conflict of interest for directors to be shareholders.
Answer: C
NEW QUESTION 39
Which of the following actions would breach CIMA's Code of Ethics for Professional Accountants?
- A. An accountant has been asked to identify the two least profitable factories so that they can be closed down, with the loss of all jobs. All of the company's factories are located in areas of high unemployment.
- B. An accountant has been asked to select a new supplier and has decided to recommend a supplier based in country A because that will give the accountant an excuse to visit a family member who lives there.
- C. An accountant has been asked to compile a list of all contacts at the company's bank so that they can be included in the mailing list for the calendar and coffee mug that are distributed as business gifts by the company in December of every year.
- D. An accountant has been asked to confirm that a complex financial instrument that has been recommended by the bank is suitable for the company. The accountant does not understand the instrument, but has confirmed its suitability because senior management wishes to use it.
- E. An accountant has been asked to evaluate an investment opportunity that is open for a very short time.
The accountant has recommended rejecting the opportunity without doing any evaluation because he was too busy to study the proposal properly.
Answer: B,D,E
NEW QUESTION 40
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?
- A. Availability
- B. Integrity of processing
- C. Confidentiality
- D. Integrity of data
Answer: A
NEW QUESTION 41
XYZ is a large supermarket chain which has engaged in online shopping and home delivenes It has a 24/7 service which runs on a central server allowing its customers to input orders at any time XYZ runs a card loyalty scheme which is hosted on the central server All transactions, whether shop based or on-line, create an update on the central database on the central server Which THREE of the following types of Personally Identifiable Information (Pll) will XYZ have to hold for its customers?
- A. Name
- B. Credit card details
- C. XYZ Customer identification
- D. Address
- E. Date of Birth
Answer: A,B,D
NEW QUESTION 42
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?
- A. When its training programmes promise to unlock the secret of selling its product.
- B. When it asks its agents to buy product and marketing material up front.
- C. When it offers returns on its agents' investments that seem remarkable.
- D. When it offers its agents more reward for recruiting other agents than for selling its product.
Answer: D
NEW QUESTION 43
MNO is a hotel chain which consists of many small local hotels spread throughout Sealand and often used by business customers It has decided to undertake scenario planning to see how it might be affected by changes in the future.
Which TWO of the following scenarios would be helpful in strategic scenario planning for MNO?
- A. An increase in interest rates
- B. The growth in internet services that facilitate short-term room lets by private landlords.
- C. The increase in the use of search apps to book hotel rooms
- D. Climate change
- E. A change in local business rates for private property.
Answer: B,C
NEW QUESTION 44
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