Free CIMA P3 Exam Dumps Questions & Answers

A hospital is part of a government provided health service which is free to patients. The management of the hospital is concerned with the need to minimise the risks to which the hospital is exposed from patient litigation.
In this context, which TWO of the following are appropriate steps to manage this risk?

• A.Allocating a risk score to patients depending on age, general heath and similar consideration and refusing to admit patients whose risk score exceeds a certain threshold.
• B.Ensuring that a policy is in place to transfer or discharge critically ill patients so as to minimise fatalities in the hospital.
• C.Ensure that proper documentation is in place for all patients showing such details as symptoms, treatments, and test results.
• D.Ensuring that patients undergoing procedures sign documentation to confirm that the risks have been explained to them and that they understand.
• E.The management refuses to allow the hospital to participate in the Major Accident Plan for the city in which it is located. It believes the Plan could expose the hospital to excessive risk.

J plc is a wholesale building supply business. It has a large warehouse where some of its materials are stored.
Last month three accidents occurred where employees were slightly injured whilst moving items from the 5th shelf. The 5th shelf is located 15 metres up from the ground.
This is a health and safety risk and could also be a reputation risk in the longer term.
Which of the following risk mitigations should the company employ?

• A.Avoid by sending the employees on a training course on Health and Safety.
• B.Reduce by storing some items on the first three shelves and storing other items outside.
• C.Accept by just accepting this is a risk the company has to take and some employees may get injured.
• D.Transfer by insuring against this risk.

They key objective of maximizing shareholders wealth would indicates that a capital investment project with a large positive BPV should be accepted.
Which THREE of the following statements are correct?

• A.In some circumstances project with a negative NPV should be accepted.
• B.The directors should balance the need for a positive NPV with the company's longer term strategic requirements.
• C.NPV Is always the best method of appraising a capital investment project.
• D.It will always be in the director's best interest to accept projects with high positive NPVs.
• E.Financial methods of evaluation are not the only factors to consider when appraising a project.
• F.If the positive NPV is large, the needs of other stakeholders needed considered.

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 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.
• B.Stakeholders will not care about the vulnerabilities faced by KLO provided the independent accountant can confirm that the company has sound systems in place
• C.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
• D.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
• E.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

A UK manufacturing company has simultaneously:
* purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65
* sold a call option that grants the option holder the right to buy USD 1million at a price of GBP1.00 = USD1.61 (this option has the same maturity date as the put).
Which of the following is a valid explanation for entering into these option positions?

• A.The company expects to pay USD 1million to a supplier and wishes to obtain additional protection against the USD strengthening beyond GBP 1.00 = USD 1.65.
• B.The company expects to pay USD 1million to a supplier and wishes to offset the premium from the call option against the cost of the put option.
• C.The company expects to receive USD 1million from a customer and wishes to obtain an additional benefit if the USD strengthens beyond GBP 1.00 = USD 1.61.
• D.The company expects to receive USD 1million from a customer and wishes to offset the cost of the put option by the premium on the call option.