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The following CIMAPRA19-P03-1-ENG questions are part of our CIMA CIMAPRA19-P03-1-ENG real exam questions full version. There are 247 in our CIMAPRA19-P03-1-ENG full version. All of our CIMAPRA19-P03-1-ENG real exam questions can guarantee you success in the first attempt. If you fail CIMAPRA19-P03-1-ENG exam with our CIMA CIMAPRA19-P03-1-ENG real exam questions, you will get full payment fee refund. Want to practice and study full verion of CIMAPRA19-P03-1-ENG real exam questions? Go now!

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CIMA CIMAPRA19-P03-1-ENG Exam Actual Questions

The questions for CIMAPRA19-P03-1-ENG were last updated on Feb 21,2025 .

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Question#1

GHY is a listed company. Tom is GHY's CEO and Peter is its non-executive Chair of the Board. Tom and Peter both have substantial relevant business and industrial experience and both are believed to have considerable integrity. Tom and Peter quickly developed a good working relationship after Peter's appointment. They have become close friends.
Tom briefs Peter on every aspect of the business. Tom and Peter jointly agree the agenda for every board meeting and both agree on the manner in which matters will be presented to the board.
Taking account of the principles of good corporate governance, which of the following statements is correct?

A. It is entirely appropriate that Tom and Peter have this kind of relationship and both are acting in the best interests of the company.
B. Non-contentious board meetings show how well Tom and Peter are running the company and shows that the management is cohesive.
C. The relationship between Peter and Tom may have a detrimental effect on company decision making as the Board is not always being informed about matters in an unbiased manner.
D. Since the non-executive chair clearly has a significant role within this company there is little danger that any individual will become excessively dominant.

Question#2

A project has a net present value of $2 million.
Total cash outflows of this project have a present value of $14 million, which includes staff costs of $10 million.
What is the project's sensitivity to staff costs?

A. 20%
B. 63%
C. 71%
D. 14%

Question#3

Which of the following summarises Purchasing Power Parity Theory (PPPT)?

A. Government intervention cannot affect the inevitable rise or fall of its currency in the short-term.
B. The difference between the spot and the forward exchange rates is equal to the differential between the inflation rates in the two countries.
C. PPPT predicts that the country with the lower inflation rate will see the currency devalue accordingly.
D. The difference between the interest rates in the two countries is equal to the differential between the spot and the forward exchange rate for the currency in the two countries.

Question#4

MNB is a multinational IT company with headquarters in Asia and with operations in all continents.
MNB is attempting to expand its operations in Europe. This is seen as a major challenge as the European market is very well developed and highly competitive.
MNB develops and manufactures its own products. Parts and assemblies are sourced across Asia, America and Europe. These are sometimes purchased locally as a condition of a contract, but MNB aims to include as much of its own equipment as possible. Transfer prices between MNB's subsidiaries can be set in YEN, USD, EURO, GBP. Transfer prices are revised every month in line with production times as most goods are made on short order with sales cycles running at 3-4 months.
What types of risk are being presented here?

A. Political risk
B. Currency risk
C. Economic risk
D. Environmental risk
E. Fraud risk
F. Legal risk

Question#5

DFG's home currency is the D$.
DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency.
DFG's treasurer has noted the following:
• Inflation has been running at 5% in DFG's home country and 8% in country L
• Interest rates are 7% in DFG's home country and 11% in country L
• The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196
Which of the following statements is consistent with these figures?

A. Interest rates are expected to continue unchanged, but country L's inflation rate will increase in proportion to the inflation rate in DFG's home country.
B. Interest rates are expected to continue unchanged, but country L's inflation rate will decrease in proportion to the inflation rate in DFG's home country.
C. Country L's interest rate is expected to decline relative to that of DFG's home country and inflation rates are expected to continue unchanged.
D. Country L's interest rate is expected to increase relative to that of DFG's home country and inflation rates are expected to continue unchanged.

Exam Code: CIMAPRA19-P03-1-ENGQ & A: 247 Q&AsUpdated:  Feb 21,2025

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