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: Apr 29, 2026

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Question 1

Which of the following statements best explains why a corporate treasury department should be established as a cost centre rather than a profit centre?

A : Treasury Department should not be encouraged to speculate.

B : Treasurer should not have a great deal of responsibility.

C : ere is no way for the Treasury Department to generate revenue.

D : Treasurer has the ability to manipulate the Department's reported profit.

Answer: A

Question 2

The acronym VPN stands for.

A : rified Private Network

B : rtual Private Network

C : ry Personal Network

D : rtual Personal Network

Answer: B

Question 3

WhichTHREEof the following are principles of good corporate governance according to the UK Corporate Governance Code?

A : adership

B : liability

C : muneration

D : nesty

E : countability

Answer: A,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

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 : 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

B : 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 : 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 : 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.

Answer: A

Page: 1 / 56

Total 278 Questions | Updated On: Apr 29, 2026

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