Free CIMA CIMAPRA19-P03-1-ENG Exam Questions
Absolute Free CIMAPRA19-P03-1-ENG Exam Practice for Comprehensive Preparation
-
CIMA CIMAPRA19-P03-1-ENG Exam Questions
-
Provided By: CIMA
- Exam: P3 Risk Management (Online)
- Certification: CIMA Professional Qualification
-
Total Questions: 276
-
Updated On: Dec 05, 2025
-
Rated: 4.9 |
-
Online Users: 552
-
Question 1
-
Company M has lost 25% of its revenue in the last three months due to bad debts. One of thereceivables written offwasfroma long standing customer and the other three werefromnew customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?
Answer: A,D
-
Company M has lost 25% of its revenue in the last three months due to bad debts. One of thereceivables written offwasfroma long standing customer and the other three werefromnew customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
-
Question 2
-
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?
Answer: A
-
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%.
-
Question 3
-
A has an opportunity to invest $90,000 in a project that is expected to generate annual cash inflows of $60,000 for each of the next three years. The project's beta coefficient implies a discount rate of 12% for this project, based on a risk-free rate of return of 3%.
A is prepared to forego the expected cash flows from this project in return for a guaranteed payment of $50,000 at the end of year 1, $42,000 at the end of year 2 and $30,000 at the end of year 3.
What is the certainty equivalent value of this opportunity to A?
Answer: B
-
A has an opportunity to invest $90,000 in a project that is expected to generate annual cash inflows of $60,000 for each of the next three years. The project's beta coefficient implies a discount rate of 12% for this project, based on a risk-free rate of return of 3%.
-
Question 4
-
Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?
Answer: B,C
-
Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?
-
Question 5
-
You are theManagementAccountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc.
You discover that a trainee employee, who is responsible for cleaning out the delivery vans has been taking damaged goods and packets which have reached their sales expiry date and has been selling them to friends. These products would otherwise have been discarded as waste.
The trainee in question is the nephew of one of the senior managers.
What is the correct course of action?
Answer: C
-
You are theManagementAccountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc.