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CIMA Strategic level P3 Exam Dumps

Page: 5 / 13
Total 339 questions

Risk Management Questions and Answers

Question 17

The managers of a company are agents for the shareholders tasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?

Options:

A.

Investing in projects with the shortest payback period.

B.

Investing in projects with positive net present value.

C.

Investing in projects with the greatest level of risk.

D.

Not paying a dividend for several years in order to invest in new projects.

Question 18

H sells machinery and also associated services, such as advice and repairs. H's industry is going through considerable transformation.

Classify each of the examples of information available to H's management as strategic, operational or of having little value.

Options:

Question 19

NLC, a retail chain, is considering moving its information systems which support its point of sale infrastructure into the cloud.

Which TWO factors should it consider in choosing its supplier?

Options:

A.

Cheapest option offered

B.

Certified security

C.

Proximity of facilities to head office

D.

Robust service level agreement

Question 20

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

Page: 5 / 13
Total 339 questions