Strategic Case Study Exam Updated Study Material & CIMAPRO19-CS3-1 Online Test Simulator & Strategic Case Study Exam Valid Exam Answers
Strategic Case Study Exam Updated Study Material & CIMAPRO19-CS3-1 Online Test Simulator & Strategic Case Study Exam Valid Exam Answers
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CIMA Strategic Case Study Exam Sample Questions (Q44-Q49):
NEW QUESTION # 44
The Director of Finance, William Seaton, has stopped you in the corridor:
"Your report was really helpful, but the Board is still considering the implications of that email from Jan Archibald at Fouce Oil. I need to make a more detailed report to the Board and I would like you to draft it for me.
I know that we have owned and operated oil wells in the past, but that has always been with the intention of finding a buyer who is prepared to pay a realistic price. We have chosen never to think about the implications of keeping wells.
I need a report from you that covers the following issues:
* The key political risks of retaining our interest in these oil wells, with particular emphasis on high consequence, high likelihood risks.
* A suitable response to each of your political risks.
* An overview of how changes in the global economy and the demand for oil could affect the decision to proceed.
* The challenges associated with putting together a management team to take charge of the production side of this proposed new strategy.
I realise that this is a lot to ask of you, but I need you to move quickly because of the interest from our biggest shareholder."
Answer:
Explanation:
Complete your answer and submit
NEW QUESTION # 45
You have received the following email from Marcus Svenson, Finance Director:
From: Marcus Svenson, Finance Director
To: Senior Finance Manager
Subject: News reports
Hi,
I have sent you a link to a news site on the internet. Things are getting complicated in Bravador.
Every Board member has been asked to attend a brainstorming session this afternoon, before the CEO flies out to Bravador this evening. We will be considering the following four matters:
* Is it acceptable for us to develop this forest, given the commitment that we have made with respect to indigenous peoples' rights? They have been quoted at the end of the news article.
* Is it fair for the environmental protestors to complain that our operations are unsustainable?
* Would it be unethical to offer to build a village, with a proper school and medical clinic, for the tribe and to offer them work in our forestry operations?
* Is it really a good idea for the CEO to fly to Bravador just to appear on the television news in his boots and overalls?
Please email me your thoughts on each of these matters before I leave for the meeting this afternoon.
Marcus
Answer:
Explanation:
Complete your answer and submit
NEW QUESTION # 46
You are sitting in your office when you hear Marcus Svenson, the Finance Director, speaking on the telephone. You can hear only Marcus' side of the conversation:
"Hello, I would like to speak to Sally Walker please. It is Marcus Svenson here. (pause) Hi Sally, you contacted me six months ago to discuss a job opportunity that you thought I'd be suitable for. I said that I didn't wish to pursue it at that time because I was committed to Wodd. Things have changed since then and I would like to be considered for a finance directorship in another company. (pause) Yes, I'm still with Wodd. (pause) Yes, I realise that there was an unfortunate story in the business press about the problems that the weak USD is causing us, but there was very little that I could do to prevent that. (pause) I am sorry to hear that. I had hoped to move on." (sound of telephone hanging up and door opening) Marcus discovers that you are sitting at your desk and realises that you would have heard his side of the call.
"Please don't tell anybody what you heard. Would you regard it as unethical to respect my privacy?
I suspect that the CEO knows that I am thinking of leaving. He commented on the need for Board members to be loyal to Wodd at the last Board meeting. But don't you agree that the shareholders can better protect themselves against currency fluctuations than the directors?
The crazy thing is that I suspect that the Chairman will dismiss me next month. If that happens, I get a year's salary as a severance package. That will really annoy the shareholders. How can I justify accepting the severance package if I am effectively being dismissed for failing to manage Wodd's finances properly?
I need to explain at the next Board meeting why it would have been difficult to evaluate the risk of the USD weakening. According to an article I read, it has been picked up as a serious problem for us. How would you advise me to explain that?" Reference Material:
Answer:
Explanation:
Complete your answer and submit
NEW QUESTION # 47
Daily Gazette
Celebrities flock to release tax returns
Comedian Madd Wilkins is the latest celebrity to post his tax returns online. The comedian earned M$1,600,000 from his sell-out tour and from the sale of DVDs. He paid tax of M$608,000 on that income. The comedian quipped, "there's nothing funny about paying tax, but then there's nothing very funny about my act either so it's only fair that I should pay the full whack".
Public concern about the tax benefits enjoyed by wealthy celebrities using artificial schemes such as investing in forestry to minimise their tax bills has led to closing tax loopholes topping the political agend a. Many wealthy individuals have volunteered their tax files in order to reassure the public that they are not benefitting from such schemes.
Answer:
Explanation:
Complete your answer and submit
NEW QUESTION # 48
The following email has just arrived:
From: William Seaton, Director of Finance
To: Finance Manager
Subject: News article
Hi,
My Secretary has drawn my attention to the attached newspaper clipping. I have been reading comments like this since Fouce Oil acquired its interest in 2010. We briefed the press at the time and made it clear that we would not be commenting further on our relationship with it unless it changed materially. Nothing has happened since then to make us change our mind on that.
The Board has asked me to compile a report on the following:
* How might the presence of Fouce Oil, as a 25% shareholder, affect our decision making as a Board of Directors? Perhaps, surprisingly, we have never had a formal discussion of this matter.
* How will Fouce Oil's stake in Slide affect our share price?
I would like you to email me your thoughts on these points so that I can have as long as possible to think about what I will say to the Board.
Thanks
William
The newspaper clipping can be found by clicking on the Reference Materials button.
Answer:
Explanation:
Complete your answer and submit
NEW QUESTION # 49
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