P3 Braindumps PDF, CIMA P3 Exam Cram
New 2022 P3 Sample Questions Reliable P3 Test Engine
NEW QUESTION 16
B is a horticultural retailer with limited funds available to acquire new retail property.
B's Finance Manager has analysed two potential property investments. Investing in property P shows an IRR of 21% while the IRR on property Q is 17%.
The Finance Manager has also advised that the NPV for property P is $750K, while the NPV of property Q is
$850K.
The Board needs to choose between the two properties as it has insufficient funds for both. Based purely on the Finance Manager's analysis, which of the following is true?
- A. Premises P is clearly better than property Q in all respects.
- B. Board members who wish to maximise return on capital employed will want property Q while those who wish to maximise shareholder wealth will want property P.
- C. Premises Q is clearly better than property P in all respects.
- D. Board members who wish to maximise return on capital employed will want property P while those who wish to maximise shareholder wealth will want property Q.
Answer: D
NEW QUESTION 17
Which TWO of the following might create a good control environment?
- A. Management has just revisited the annual budget and made it much harder to achieve in order to try and boost profits
- B. Management did not have time to carry out all the staff appraisals this year but all staff have received a pay increase instead
- C. The Finance Director has just been given a place on the audit committee to increase the committee's financial knowledge
- D. The Board has just issued an ethical code
- E. Managers have good job descriptions that define their roles in the organisation clearly
Answer: D,E
NEW QUESTION 18
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 will remain just as profitable selling to the black market as to real fans
- B. CDE will need to implement a new firewall to prevent this type of attack.
- C. CDE is likely to lose the ticket franchise for international football events
- D. CDE customers will turn to other ticket sources for their tickets
- E. CDE is likely to face significant fines for the breach.
Answer: B,D
NEW QUESTION 19
The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.
Answer:
Explanation:
NEW QUESTION 20
K plc is a large listed company in the retail industry. It has recently appointed T as a non-executive director. T has never had any previous involvement with K plc but is well known to K's Chief Executive P because T is the Managing Director of K plc's largest supplier.
K has recently expanded into Asia. Doubts about the wisdom of the move have been expressed in the financial press with some journalists commenting that it has exposed K plc to higher degrees of risk than previously.
The move had been approved by the Risk Committee which consists of four Non-Executive Directors (NEDs) all of whom have significant experience in business.
K plc does not have a Nominations Committee. Nominations to the Board are usually proposed by P and generally agreed by the other directors.
In relation to the above scenario which of the following comments is valid?
- A. The Risk Committee should have rejected the proposal to enter the Asian market merely because it exposed K to greater risk than the other markets in which it operates.
- B. There is no possible conflict of interest in relation to T's position as a NED and as Managing Director of a supplier company since, in both roles, he would clearly want K plc to prosper.
- C. K plc is in line with best practice as it only has NEDs on its Risk Committee.
- D. The absence of a Nominations Committee exposes K plc to the risk that the Chief Executive may have unfettered power.
Answer: D
NEW QUESTION 21
A large, publicly funded university is considering introducing a new information system in order to enhance its ability to store and retrieve academic records for past and current students, including the registration and deregistration of students.
In conducting an evaluation of the system, which THREE features would the management of the college be most likely to consider as essential prerequisites to implementation?
- A. All information on the system can be accessed easily from outside the university through the internet.
- B. The system can link seamlessly with the system used by the university for processing financial transactions and producing financial statements.
- C. The system is capable of being run in parallel with the current system so as to have the opportunity to examine and overcome any unforeseen difficulties that might arise.
- D. The system has the capacity to deal with all existing records and all new records to be created in the foreseeable future.
- E. The system has been demonstrated to operate with a degree of accuracy at least as good as the existing system and as good as that used by similar universities.
Answer: B,D,E
NEW QUESTION 22
Move the category of risk to the box beside the risk description it best matches.
Answer:
Explanation:
NEW QUESTION 23
Select the correct ethical principle that corresponds to each ethical dilemma described.
Answer:
Explanation:
NEW QUESTION 24
Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?
- A. There could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens
- B. Environmental concerns could lead to a decrease in the availability of trees to make paper
- C. Budget changes could have an impact on the funding available to college and university libraries
- D. The quality of output from printing presses might improve
- E. The terms offered by media companies for film rights for books could change
Answer: C,E
NEW QUESTION 25
A capital investment project shows a NPV of £3,450 at a discounted rate of 8% and an NPV of £1,210 at a discounted rate of 9%.
What is the internal rate of return?
- A. 11.85%
- B. 9.54%
- C. 10.85%
- D. 10.54%
Answer: B
NEW QUESTION 26
University B has several departments. Each department at times obtains funding from different sources such as government grants and industry sponsorships. The central management of the university has decided to develop a module within its current Information System to track these funds centrally.
The central management of the University has decided to utilise in-house expertise in order to build this module.
Which THREE of the following represent advantages of developing this module and doing so using in-house expertise?
- A. Time will be saved because there will be no need to explain the basic structure and operations of the University to an outside contractor.
- B. The system will make it easier for central management in the University to access the performance of individuals, departments and groups.
- C. There is a better chance that in-house experts will spot long-standing inefficiencies or anomalies in the existing system.
- D. In-house experts will be more easily able to integrate the module into the existing system.
- E. The system may limit the freedom of heads of department to act with autonomy.
Answer: A,B,D
NEW QUESTION 27
The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.
Answer:
Explanation:
NEW QUESTION 28
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. It is entirely appropriate that Tom and Peter have this kind of relationship and both are acting in the best interests of the company.
- 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. Since the non-executive chair clearly has a significant role within this company there is little danger that any individual will become excessively dominant.
- D. Non-contentious board meetings show how well Tom and Peter are running the company and shows that the management is cohesive.
Answer: B
NEW QUESTION 29
Which of the following best describes the relevance of value at risk (VaR) as a decision tool?
- A. VaR quantifies past volatility
- B. VaR quantifies future volatility
- C. VaR quantifies the maximum loss that could ever be incurred
- D. VaR can only measure downside risk
Answer: A
NEW QUESTION 30
KLO is a major quoted car rental company The company is considering publishing its first cyber risk management report AH rental bookings are made online Customers receive a booking reference number that they use to collect their cars from a convenient branch Customers enter their credit card details both so that KLO can take payment for their rental and also so that the customers can be charged automatically for late returns or damage to cars KLO's management believes that it has three key areas of cyber risk Cyber criminals may wish to make bookings using fictitious data in order to steal KLO's cars, they may wish to use customers details to identify addresses of people who are away from home so that they can burgle houses and they may wish to abuse customer credit card details KLO's Board is concerned that admitting to the nsk of stealing cars might encourage cnminals to exploit that vulnerability AJso. it is concerned that customers will be reluctant to rent cars if that would mean that their homes could be at risk of burglary while they are away The vulnerability of credit card details seems obvious and so the Board is not reluctant to admit to that.
Which TWO of the following are correct?
- A. The independent accountant who will express an opinion on the risks and controls will be unwilling to sign the report unless it contains a full account of all risks and controls
- B. The independent accountant's report on KLO's cyber risk management will refer only to those vulnerabilities that have been identified by KLO's Board
- C. Stakeholders will not care about the vulnerabilities faced by KLO provided the independent accountant can confirm that the company has sound systems in place
- D. The Board should be clear about all sensitive information that the company holds, but should also be clear about the robust controls in place to safeguard that information.
- E. If KLO's Board omits one of more areas of concern from the report then the independent accountant who will sign the report is unlikely to discover that omission
Answer: A,D
NEW QUESTION 31
B, a construction company, has a policy of carrying out a post completion audit on every construction project undertaken where the value exceeds $1 million.
What is the role of the post completion audit?
- A. To highlight what can be done to improve similar future projects.
- B. To signify the end of the project.
- C. To apportion blame for things not done well.
- D. To reward staff and celebrate success.
Answer: A
NEW QUESTION 32
A US company has to pay £500,000 for a new machine.
You have the following information on currencies.
EUR 1 = £1.2300
EUR 1 = USD 1.6200
What is the cost of the machine in USD?
Give your answer to the nearest $.
Answer:
Explanation:
$658501, $658537
NEW QUESTION 33
G plc has decided to move its production plant to overseas Country A.
This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.
The Production Director has identified that there are some political risks in moving to Country A.
Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.
Answer:
Explanation:
NEW QUESTION 34
Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?
- A. Accountability
- B. Leadership
- C. Remuneration
- D. Reliability
- E. Honesty
Answer: A,B,C
NEW QUESTION 35
Company X has been advised by its internal audit team that it should have a fraud response policy A is a new member in the internal audit team and he does not see why this would help to prevent fraud and has asked for an explanation Which TWO of the following would be included in this explanation? It would act as a deterrent and help prevent staff from committing fraud
- A. It would lay down processes and procedures that internal audit should follow if they suspect fraud
- B. It would be part of the internal control system of the company
- C. It would show that the company is taking the risk of fraud seriously.
- D. It would clarify the role of various staff in detecting fraud
Answer: A,B
NEW QUESTION 36
G plc has decided to move its production plant to overseas Country A.
This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.
The Production Director has identified that there are some political risks in moving to Country A.
Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.
Answer:
Explanation:
NEW QUESTION 37
JC is a car manufacturing company in country C and manufactures diesel cars It is facing a number of serious risks Which TWO of the following risk factors are external?
- A. JC's marketing director is considering an attractive job offer from one of J's main competitors
- B. JC is facing court action arising from injuries to customers caused by an alleged brake failure in one of its cars
- C. Diesel cars are being criticised by experts because it is believed they cause more harmful pollution than petrol
- D. Country F, JC's main market, is threatening to impose tariffs on car imports
- E. JC's production staff are complaining that their wages are too low compared to wages paid to other employees.
Answer: C,D
NEW QUESTION 38
Select the most appropriate level of responsibility for managing each of the following risks.
Answer:
Explanation:
NEW QUESTION 39
P Ltd manufactures and sells electrical goods through retail outlets.
N is P Ltd's Sales Director. He has been recently promoted from a senior sales position with P Ltd. He has been forced to spend the first six months as Sales Director on dealing with an administrative mess left behind by the previous sales director.
You are a Senior Management Accountant at P Ltd. You have worked with N for many years.
N has worked hard and has made many changes that have brought significant benefit to the business.
N has asked you to postpone the recording of some purchase invoices so that he will meet his quarterly targets on profit margin.
What should you do?
- A. Collect all the facts, distance yourself from the situation but say nothing.
- B. Do nothing, no rules have been broken, tell N that you cannot do as he asks and that he needs to abide by the professional codes.
- C. Document the situation and present the facts to your manager.
- D. Write up the facts of the issue and put it on your files.
Answer: B
NEW QUESTION 40
The interest rate on EUR deposits is 7%. The interest rate on GBP deposits is 5%. The spot rate is EUR/GBP0.8500. What is the one year forward rate predicted to be assuming interest rate parity holds true?
- A. 0.8341
- B. 0.7500
- C. 0.8662
- D. 0.9633
Answer: A
NEW QUESTION 41
......
Feel CIMA P3 Dumps PDF Will likely be The best Option: https://www.troytecdumps.com/P3-troytec-exam-dumps.html
P3 exam torrent CIMA study guide: https://drive.google.com/open?id=1wEcDY5aiPtiYPaVWbGjTYdsCjk5mJoa2