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CIMAPRA17-BA4-1 Exam - Topic 4 Question 72 Discussion

Evidence suggests that during a recession, companies with a clear sense of ethical direction will:
C) Be more expensive to run
A) Continue to be profitable
B) Lose business to unethical companies
D) Be a poor investment

CIMAPRA17-BA4-1 Exam - Topic 4 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 72
Topic #: 4
[All CIMAPRA17-BA4-1 Questions]

Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

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Suggested Answer: C

by Zona at Jul 27, 2023, 01:23 AM

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Rodolfo
8 months ago
Losing business to unethical companies is a real risk.
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Emeline
8 months ago
Surprised to see this! I thought ethics would hurt profits in a recession.
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Amie
8 months ago
Not sure about that. Can they really compete with cheaper options?
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Tequila
9 months ago
Totally agree! Ethics matter, even in tough times.
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Vicente
9 months ago
I've read that ethical companies often maintain customer loyalty.
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Sue
9 months ago
I’m a bit confused about this one. I thought ethical companies might have higher costs, but I can't recall if that was a factor in their overall success.
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Aleisha
9 months ago
I feel like we practiced a question similar to this, and it suggested that ethical practices can lead to long-term profitability, which makes me lean towards A.
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Tish
9 months ago
I’m not sure, but I think we went over a case where ethical companies struggled more during recessions. Maybe B is the answer?
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Alonzo
10 months ago
I remember discussing how ethical companies might actually maintain customer loyalty during tough times, so A could be right.
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Christiane
10 months ago
I'm feeling pretty confident about this one. The key is recognizing that we need to use a reporting tool to get the weekly email metrics, and Email Studio seems like the most straightforward option to set up a scheduled report. I'll make sure to review the details, but I think A is the way to go.
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Shantay
10 months ago
I practiced a similar question on relevant costing and I remember that only avoidable costs should be included. Direct labor costs definitely seem to apply here.
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Dalene
10 months ago
I'm torn between options A and B. I feel like both inspection and materials engineering folks would have to engage with RP 580, but I think maintenance might be more relevant.
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Gerardo
1 year ago
I'm going with Option A. Ethical companies have a strong moral compass to guide them through the storm. Plus, they can probably write off their halo polish as a business expense.
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Tommy
1 year ago
It's true, ethical companies often have better employee morale and productivity, which can help them weather economic downturns.
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Alisha
1 year ago
I think companies that prioritize ethics are more likely to make decisions that benefit their long-term success.
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Pa
1 year ago
I agree with you, ethical companies tend to have loyal customers who support them during tough times.
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Melvin
1 year ago
Option D is just ridiculous. Ethical companies are usually a safer investment, especially during tough times.
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Alberta
1 year ago
Exactly, being ethical can actually give companies a competitive advantage.
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Jesusita
1 year ago
A) Continue to be profitable
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Jacklyn
1 year ago
But unethical companies might cut corners and end up losing in the long run.
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Anissa
1 year ago
A) Continue to be profitable
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Sabra
1 year ago
B) Lose business to unethical companies
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Barbra
1 year ago
But unethical companies might cut corners and end up losing in the long run.
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Joanne
1 year ago
B) Lose business to unethical companies
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Gilma
1 year ago
I agree, ethical companies tend to have loyal customers even during a recession.
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Lisbeth
1 year ago
I agree, ethical companies tend to have loyal customers even during a recession.
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Raylene
1 year ago
B) Lose business to unethical companies
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Freida
1 year ago
A) Continue to be profitable
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Dalene
1 year ago
A) Continue to be profitable
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Cherry
1 year ago
I agree, ethical companies tend to have loyal customers even during a recession.
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Elliott
1 year ago
A) Continue to be profitable
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Sherell
1 year ago
Option C doesn't make much sense. Being ethical shouldn't increase the cost of running a business.
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Yoko
1 year ago
A) Continue to be profitable
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Anthony
1 year ago
B) Lose business to unethical companies
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Yvonne
1 year ago
A) Continue to be profitable
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Louvenia
1 year ago
I'm not so sure about that. Option B sounds more plausible - unethical companies might take advantage of the situation and steal business.
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Penney
1 year ago
I agree with you. Option B is definitely a possibility, especially during tough economic times.
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Desirae
1 year ago
I think option A is more likely. Companies with a clear ethical direction tend to have loyal customers.
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Katie
1 year ago
Option A seems logical to me. A clear ethical direction can help companies navigate the challenges of a recession and maintain profitability.
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Zita
1 year ago
That's true, customers tend to gravitate towards companies they trust, especially during uncertain times.
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Catarina
1 year ago
B) Lose business to unethical companies
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Edmond
1 year ago
I agree, having a strong ethical foundation can help companies weather tough economic times.
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Lindsey
1 year ago
A) Continue to be profitable
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