Pass the CIMA Strategic P3 Questions and answers with ValidTests

Exam P3 Premium Access

View all detail and faqs for the P3 exam

Go to Exam

Viewing page 3 out of 11 pages

Viewing questions 21-30 out of questions

Questions # 21:

B is a small retail bank that offers customers many on-the services B is keen to ensure sound security both to protect the bank's assets and also to safeguard customer privacy

B's IT Security Manager has suggested that the bank should use two phase authentication for access to the on-line systems

Which TWO of the following are examples of two phase authentication?

Options:

Customers first input a password and then receive an access code via email or text message that also has to be input

Customers first input a password and then use a card or token to gain access

Customers must input a valid user name and then input a password user name first input a password and then a pin number

Customer passwords must contain both letters and numbers and must be changed regularly.

Expert Solution

Questions # 22:

The technology used by 3D printers is developing rapidly These machines can now use a data file to print a solid object Depending on the printer the object can be plastic, metal or ceramic The increasing capability of those printers is being matched by the falling prices of the printers themselves and of the materials that they use to create the finished product

Which THREE of the following suggest that 3D printing is a potentially disruptive technology?

Options:

Parts created by 3D printers can be distorted during the print process

The printers use expensive materials

Many of the spare parts used to repair cars are made out of plastic or metal.

There is a limit to the size of objects that can be 3D printed.

Design engineers typically design and draw plans for new products on their computers.

Some courier companies have purchased 3D printers for their depots

Expert Solution

Questions # 23:

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 $.

Options:

Expert Solution

Questions # 24:

Which of the following statements are correct?

Options:

It is always possible to remove all risks when undertaking large projects.

If a project has high risks it should always be accepted as the rewards will always be high.

If a project has low risks it will usually have relatively low returns.

Risk can always be transferred to someone else.

Risk should be carefully considered when evaluating possible future projects.

Expert Solution

Questions # 25:

There are many method for appraising capital projects.

Select ALL correct statements.

Options:

The time value of money should be the same for all similar competing projects.

Decisions should only consider the financial implications of the project.

No one method of capital appraisal taken alone is adequate to evaluate competing projects.

Net Present Value evaluation considers a range of different discount rates considering different risk factors and finance methods.

Opportunity cost is only relevant when capital is scarce.

All projects should be evaluated using sensitivity analysis.

Expert Solution

Questions # 26:

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?

Options:

An Audit Committee consisting of five independent persons with expertise in finance, human resources, and medicine.

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.

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.

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.

Ensuring that the Head of Internal Audit examines and authorises all expense claims by hospital staff.

Expert Solution

Questions # 27:

C Ltd is a private, family-owned company which is hoping to become listed on a recognised Stock Exchange within the next two years. At the moment, the Board of Directors comprises five directors; four of whom are from the founding family and all of whom are involved in the day-to-day running of the business. The remaining director obtained a seat on the Board three years ago as a condition of an investment by a venture capital fund.

The Board meets in half-day sessions once a fortnight and the Board meetings are reasonably well run. All decisions are taken by the Board as a whole. There are no sub-committees.

Which of the following steps would it be appropriate for C Ltd to take in the light of the proposed listing?

Options:

Appoint enough independent non-executive directors (NEDs) that they make up at least 50% of the Board.

Appoint one of the NEDs as Chair of the Board.

Insist that the venture capital company director be removed as he is not necessarily motivated to act in the best interests of C Ltd.

Set up at least three sub-committees namely remuneration, nomination, and audit committees.

Ensure that the current executive directors are given 10 year contracts starting on the day the company is floated, to ensure consistency and continuity in the management of the company.

Set up an "agenda setting" sub-committee consisting of the current executive directors to decide the agenda for each Board meeting.

Expert Solution

Questions # 28:

Which of the following summarises Purchasing Power Parity Theory (PPPT)?

Options:

Government intervention cannot affect the inevitable rise or fall of its currency in the short-term.

The difference between the spot and the forward exchange rates is equal to the differential between the inflation rates in the two countries.

PPPT predicts that the country with the lower inflation rate will see the currency devalue accordingly.

The difference between the interest rates in the two countries is equal to the differential between the spot and the forward exchange rate for the currency in the two countries.

Expert Solution

Questions # 29:

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?

Options:

The increase in the use of search apps to book hotel rooms

An increase in interest rates

Climate change

The growth in internet services that facilitate short-term room lets by private landlords.

A change in local business rates for private property.

Expert Solution

Questions # 30:

You have been assigned the role of lead internal auditor. Your task is to carry out the annual assessment of the production line maintenance department.

When planning for this audit, which of the following must be completed?

Options:

Prepare the report.

Establish whether the controls are adequate or not.

Decide how the controls will be tested.

Learn all about the systems and controls in the department.

Carefully consider any control weaknesses that are reported.

Review previous audit findings for the department.

Expert Solution

Viewing page 3 out of 11 pages

Viewing questions 21-30 out of questions

Summer Certification Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: validbest

Pass the CIMA Strategic P3 Questions and answers with ValidTests

Exam P3 Premium Access

Options:

Options:

Options:

Options:

Options:

Options:

Options:

Options:

Options:

Options: