Free CIMA CIMAPRO19-P03-1 Exam Actual Questions

The questions for CIMAPRO19-P03-1 were last updated On Nov 18, 2024

Question No. 1

D has decided to invest in a new factory at a cost of $6,000,000. The discount rate of the project is 22% and the PV of tax shield is $80,000.

What is the IRR?

Give your answer to two decimal places.

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Correct Answer: A

Question No. 2

Why is it potentially useful for an organisation to maintain a risk register?

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Correct Answer: A

Question No. 3

M, a manufacturing company, has had some problems with defects in one of the main productsitproduces. This product has been made by the company for many years and is very profitable. Last monthithad over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability.

Which of the following controls could M introduce to reduce defects and also increase profitability?

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Correct Answer: B, D, E

Question No. 4

Risk management involves all parties in an organisation.

Which of the followingdescribe theBoard's responsibilities for risk management?

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Correct Answer: B, D, E

Question No. 5

James owns a small company which sometimes suffers from credit risk.

Which of the following measures should he put in place to help reduce this risk?

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Correct Answer: A