Free CIMA CIMAPRA19-F03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA19-F03-1-ENG exam questions and correct answers

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Total 305 Questions | Updated On: Oct 29, 2025

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Question 1

Which THREE of the following would be most important if a hospital wishes to review the effectiveness of its services?

A : proportion of surgical procedures that are deemed to be successful.

B : erage waiting times for treatment.

C : tient satisfaction ratings.

D : aff costs compared to previous years.

E : venue generated from car park charges.

Answer: A,B,C

Question 2

A company needs to raise $20 million to finance a project.

It has decided on a rights issue at a discount of 20% to its current market share price.

There are currently 20 million shares in issue with a nominal value of $1 and a market price of $5 per share.

Calculate the terms of the rights issue.

A : 1 new share for every 4 existing shares

B : 1 new share for every 20 existing shares

C : 1 new share for every 5 existing shares

D : 1 new share for every 25 existing shares

Answer: A

Question 3

The International Integrated Reporting Council (IIRC) was formed in August 2010 and brings together a

cross-section of representatives from a wide variety of business sectors.

The primary purpose of the IIRC's framework is to help enable an organsation to communicate how it:

A : nimises the environmental impact of its business processes.

B : eates value in the short, medium and long term.

C : ntributes positively to the economic well being of the environment in which it operates.

D : ures that the conflicting needs of different stakeholder groups are met in an optimal manner.

Answer: B

Question 4

A company gas a large cash balance but its directors have been unable to identify any positive NPV projects to invest in. Which THREE of the following are advantages of a share repurchase, compared with a one-off large dividend?

A : shareholder can choose whether to take the cast or not.

B : increases the number of shares issue.

C : means that the company will be able to pay lower total dividends in the future.

D : returns cash to shareholders so that they can choose hew to spend It

E : will not create an expectation for future increased dividends.

Answer: A,D

Question 5

Company A is located in Country A, where the currency is the A$.

It is listed on the local stock market which was set up 10 years ago.

It plans a takeover of Company B, which is located in Country B where the currency is the B$, and where the

stock market has been operating for over 100 years.

Company A is considering how to finance the acquisition, and how the shareholders of Company B might

respond to a share exchange or cash (paid in B$).

Which of the following is likely to explain why the shareholders of Company B would prefer a share exchange

as opposed to a cash offer?

A : would allow them to realise their investment and make a capital gain.

B : would avoid them being exposed to foreign currency risk.

C : ey would receive shares in a market that is likely to be more efficient.

D : would enable them to benefit from the future performance of the combined entity.

Answer: D

Page: 1 / 61

Total 305 Questions | Updated On: Oct 29, 2025

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