Free CIMA CIMAPRO19-P03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-P03-1-ENG exam questions and correct answers

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Total 278 Questions | Updated On: Jan 27, 2026

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Question 1

An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.

Which of the following best explains the relevance of quantifying the risk in that way?

A : ere is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

B : probability is so low as to be ignored.

C : directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

D : calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Answer: A

Question 2

Zia is an accountant and wishes to take out a Forward Rate Agreement (FRA)as a hedging instrument. The company treasurer has advised that a short-term interest rate (STIR)future would be better.

Which of the following is true of an STIR?

A : TIR can be tailored to the exact needs of the company.

B : TIR is flexible and the position can be closed quickly and easily.

C : TIR must be kept for the whole duration of the contract.

D : interest rates have gone down the price of the future will have fallen.

Answer: B

Question 3

FGT is evaluating the political risks associated with its operations around the world.

Which of the following would indicate that a particular subsidiary has a high level ofpolitical risk?

A : rthcoming elections in the subsidiary's host country.

B : subsidiary's host country requires the active participation of local partners before the subsidiary can operate.

C : mpany law in the subsidiary host country is lax.

D : subsidiary islocated a considerable distance from FGT's home country.

E : esubsidiary employs a large number of nationals from the host country.

Answer: A,B,C

Question 4

Which of the following is an ethical dilemma?

A : company is considering giving poorly-paid staff a generous pay rise.

B : company is deciding whether to issue debt or equity.

C : company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.

D : company must decide whether to settle a claim from an employee who appears to have fabricated a workplace injury. The company want to avoid the cost of defending the claim.

Answer: A

Question 5

KLtdisan on-line travel agency specialising in budget package holidays to a small number of popular locations. The holidays that it sells are made up of a 'package' of flights, hotel accommodation and food. K Ltd's Finance Director is concerned that the company'sscope of operation is too narrow and wishesto diversify.

IdentifyTWOactions that K Ltdshould take immediately.

A : t up a number of activity holidays; adventure, sports and trekking for example.

B : lk book cruise accommodation and create a special package deal for retired couples.

C : Expand the number of locations it currently serves.

D : -image the locations it currently serves to make them more exotic and family friendly.

E : view the customer base looking at feedback, repeat sales and single visit statistics.

F : gage market researchers to look at future trends in holiday requirements.

Answer: A

Page: 1 / 56

Total 278 Questions | Updated On: Jan 27, 2026

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