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NEW QUESTION 34
You are a consultant to an international charity which provides aid to people displaced by war, civil unrest, and natural disaster. The charity has requested you to carry out a post implementation review on their new procurement and logistics system. Which TWO of the following should you be most concerned about when conducting this review?

  • A. An assessment of how the aid is used once it has arrived at its destination.
  • B. To create a record of good and bad experiences in relation to the implementation of the project so that the charity is able to learn from them should they decide to implement a similar project in the future.
  • C. The identification of the reason for any cost overruns so as to be able to assign responsibility to particular individuals so that the management can deal with them as they see fit.
  • D. An assessment of the extent to which the new system has led to more efficient delivery of aid to those in need.

Answer: B,D

 

NEW QUESTION 35
A patient has been prescribed a new medicine by their physician. The medicine is accompanied by a leaflet describing potential adverse effects associated with taking it. Most of these potentially adverse effects are trivial, but the leaflet states that three patients in every 10,000 who take the medicine suffer a severe reaction requiring urgent medical attention.
Which of the following statements is true?

  • A. Statistical probabilities mean very little in themselves when dealing with decisions that could have serious consequences, such as whether to take this medicine.
  • B. The patient should not be concerned because only those few patients who are susceptible to this reaction are at risk.
  • C. The patient should ignore the risk because there is only a 0.03% risk of a severe adverse reaction.
  • D. Statistically, the medicine is safe.

Answer: A

 

NEW QUESTION 36
C is a large international supermarket chain. It has many thousands of suppliers and many thousands of potential suppliers competing for shelf space m its supermarkets.
Which of the following provisions would be appropriate for C to include m its ethical code in relation to its suppliers?
Select ALL that apply

  • A. C shall not use its buying power unscrupulously.
  • B. C shall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets
  • C. C shall endeavour to take as high a percentage of each supplier's output as possible
  • D. C shall keep confidential all information received from suppliers and potential suppliers
  • E. Cshall continuously remind suppliers that it always has several alternative suppliers to choose from.
  • F. C shall endeavour to adhere to the terms of its contracts with its suppliers at all times

Answer: A,D,F

 

NEW QUESTION 37
THG is a quoted company that manufactures expensive clothes that are sold to upmarket department stores THG's Board has commissioned a stress test to identify the impact of strategic risks The consultant who is conducting the test is currently investigating the impact that a 1 % increase in interest rates would have on THG.
Which TWO of the following are valid reasons for including an increase in interest rates in the stress test?

  • A. THG might change its prices if interest rates rise
  • B. Interest rates affect consumers' disposable income
  • C. Stress testing was first developed for bank supervision.
  • D. Many of the retailers who resell THG's clothes are highly geared
  • E. THG is highly geared.

Answer: B,E

 

NEW QUESTION 38
Which of the following scenarios might be relevant stress tests for a potential lender to conduct? Which TWO of the following answers are correct?

  • A. The potential borrower might seek further debt in the future.
  • B. The potential borrower could be involved in an accounting scandal
  • C. The potential borrower might have to agree to a major wage increase for its employees.
  • D. The potential borrower might have manipulated the figures in the loan application.
  • E. The potential borrower might lose its three main customers.

Answer: C,E

 

NEW QUESTION 39
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