P3 PDF Pass Leader, P3 Latest Real Test [Q53-Q68]

ExamBoosts March 9, 2022 P3 > CIMA 0

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P3 PDF Pass Leader, P3 Latest Real Test

Valid P3 Test Answers & P3 Exam PDF

NEW QUESTION 53
Company W produces mobile phone components and has recently tendered for a substantial contract. The results of the tendering process will not become available until three months from now. If the company is successful it will require 2,000 units of a commodity which is currently traded in an open commodity market for $740 per unit. However, there has been speculation that this commodity could increase substantially in price over the next three months and so the company is considering purchasing the commodity now and storing it for three months.
The funds to buy the commodity would be borrowed at an annual interest rate of 7% and the storage cost of the product would be $5.40 per unit per month. The storage costs would be paid at the end of the three month storage period.
Which of the following represents the gain or loss (to the nearest thousand dollars) that will accrue to Company W assuming that the price of the commodity rises to $800 in three months’ time?

$62,000 gain

$95,000 gain

$88,000 gain

$16,000 loss

NEW QUESTION 54
A government department is conducting a value for money audit on a school.
The school’s pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.

NEW QUESTION 55
S Doc is an out-of-hours service provided by a country’s government. The service allows members of the public to call and speak to a nurse who can advise on medical situations which are not obviously emergencies.
Depending on the situation the caller can be referred to the full emergency services, or be advised to go to Accident and Emergency at the nearest hospital. Alternatively, a callout from a general practitioner (GP) can be organised; the caller can be advised of where GP services are available; advice can be given over the phone; or a decision can be taken that no further action is required at least until normal services resume on the next working day.
There has been a suggestion that the nurses who take these calls could be replaced by suitably trained operatives who have available to them a specially designed expert system.
Which of the following are advantages of using an expert system instead of nurses?

The operatives would be too careful and therefore would recommend unnecessary treatments or interventions.

Some callers may present with complicated scenarios that a non-medically trained operative or expert system would be unable to recognise (for example, psychological issues).

Using an expert system would make operatives less inclined to feel sorry for the caller and ensure that only relevant facts were considered in coming to a decision.

The use of an expert system would ensure that only relevant questions were asked of the caller and that operatives did not miss something vital due to distraction or fatigue.

The expert system will always follow the same path whereas the nurses may have more knowledge about some health issues and very little about others.

NEW QUESTION 56
The interest rate on EUR deposits is 7%. The interest rate on GBP deposits is 5%. The spot rate is EUR/GBP0.8500. What is the one year forward rate predicted to be assuming interest rate parity holds true?

0.8662

0.8341

0.7500

0.9633

NEW QUESTION 57
Which of the following are true of interest rate swaps?

Risk of default is high from the floating interest rate payer if interest rates rise.

An interest rate swap is an external hedging technique.

When interest rates are falling, the risk of default by the fixed interest rate payer is low.

Some companies use interest rate swaps to deliberately increase their risks because they believe that they are better at predicting future interest rates than the market.

An interest rate swap is an internal hedging technique.

NEW QUESTION 58
The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

The shares have more unsystematic risk than the stock market average.

The shares have more systematic risk than the stock market average.

The shares have more total risk than the stock market average.

The shares have less unsystematic risk than the stock market average.

NEW QUESTION 59
CDE an online ticket sales agent, has unwittingly become an accomplice in cyber crime and is suffering attacks on its own business as a result CDE’s website was poorly designed and cyber-attackers have managed to inject the site with malware, so that it collects all of CDE’s customer log-in information and enables the cyber-attackers to retrieve it.
The cyber-attackers subsequently use this information to set up Botnet agents in the customers’ devices which are then used in a Distributed Denial of Service (DDoS) attack whenever very popular tickets are being placed on sale such as international football matches.
The cyber-attackers secure access to a single portal on the site and buy multiple tickets for subsequent sale on the black market while the DDoS causes all other portals to be overloaded preventing real fans acquiring the tickets at face value.
Which TWO of the following apply in this scenario?

CDE customers will turn to other ticket sources for their tickets

CDE is likely to face significant fines for the breach.

CDE is likely to lose the ticket franchise for international football events

CDE will need to implement a new firewall to prevent this type of attack.

CDE will remain just as profitable selling to the black market as to real fans

NEW QUESTION 60
G plc has decided to move its production plant to overseas Country A.
This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.
The Production Director has identified that there are some political risks in moving to Country A.
Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.

NEW QUESTION 61
A junior sales clerk at BCD, a wholesale jewellers, received an email which appeared to be from a well known parcel delivery company informing her that a delivery had been attempted outside office hours and had consequently failed She was asked to click on a link and complete some seemingly innocent but logical questions to effect the delivery on the next day She thought no more about it but was very surprised the next month to be awarded salesperson of the month as her sales had doubled Unfortunately, on investigation it was found that this was as a result of several fraudulent orders for high-value items that had seemingly been placed by an existing customer but delivered to a new address, which turned out to be a temporary box number The existing customer’s credit card had been fraudulently charged for these orders Which of the following types of cyber-attack had the sales clerk been a victim of?

Botnets

Malvertising

Trojan

Ransomware

NEW QUESTION 62
Z is a multinational pharmaceuticals company with operations across Europe, America and Asia.
It is currently investigating the possibility of setting up a chemical and specialist production facility in South America. This would be a multi $billion investment. What steps should Z take to manage the following risks in this long term venture.

NEW QUESTION 63
Which of the following is the major advantage of Cloud storage for an enterprise?

It provides unlimited free use for the enterprise

The enterprise has complete control over it

in-house staff are not required to maintain the infrastructure

Sharing storage space with others

NEW QUESTION 64
The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.

NEW QUESTION 65
Company X has been advised by its internal audit team that it should have a fraud response policy A is a new member in the internal audit team and he does not see why this would help to prevent fraud and has asked for an explanation Which TWO of the following would be included in this explanation? It would act as a deterrent and help prevent staff from committing fraud

It would be part of the internal control system of the company

It would show that the company is taking the risk of fraud seriously.

It would lay down processes and procedures that internal audit should follow if they suspect fraud

It would clarify the role of various staff in detecting fraud

NEW QUESTION 66
Why is it potentially useful for an organisation to maintain a risk register?

To ensure that recognised risks are adequately managed.

To ensure that there are no undiscovered risks.

To eliminate all recognised risks.

To provide the risk manager with a role.

NEW QUESTION 67
Which of the following is an ethical dilemma?

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

A company is deciding whether to issue debt or equity.

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

A 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.

NEW QUESTION 68
As part of risk assessment exercise for a low-cost airline you are requested to match the risks listed below with the most approriate method of minimising or dealing with each risk.