CIMAPRA17-BA4-1 Exam - Topic 6 Question 77 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 77
Topic #: 6

Section 172 of the Companies Act 2006 provides that directors must promote the success of the company for the benefit of its members. Which of the following factors must be taken account of in complying with this duty?

(i) The interests of the company's employees

(ii) The likely consequence of any decision in the long term

(iii) The impact of the company's operations on the community and the environment

A(i) only

B(i) and (ii) only

C(ii) and (iii) only

D(i), (ii) and (iii)

Show Suggested Answer

Suggested Answer: B

by Janine at Nov 25, 2023, 11:35 AM

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Hildred

10 months ago

I thought it was just about profits, this is surprising!

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Sherman

10 months ago

I think all three factors should be included, makes sense.

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Gilbert

10 months ago

Wait, are they really required to think about the environment?

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Louis

10 months ago

Totally agree, long-term consequences matter too!

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Leatha

10 months ago

Directors need to consider employees' interests, for sure.

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Oneida

10 months ago

I feel like (i) and (ii) are definitely part of the duty, but I can't remember if (iii) is explicitly required under the Act.

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Keneth

11 months ago

I practiced a similar question where we had to identify which factors directors must consider, and I think it was all about balancing interests, so maybe it's (i), (ii), and (iii).

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Jani

11 months ago

I'm a bit unsure about this one. I think (ii) is definitely important, but I can't recall if (i) and (iii) are mandatory too.

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Erinn

11 months ago

I remember discussing how Section 172 emphasizes the need to consider various stakeholders, so I think all three factors are relevant.

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Kanisha

11 months ago

I'm feeling pretty confident about this one. The wording of the section seems to clearly indicate that all three factors must be considered.

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Josefa

11 months ago

Okay, I've got a strategy - I'll start by eliminating the options that don't seem to fully capture the requirements of the section. Then I'll closely examine the remaining options.

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Carey

11 months ago

Hmm, I'm a bit unsure about this one. I'll need to re-read the section carefully and think through the implications of each option.

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Ryan

11 months ago

This question seems straightforward - I think the key is to focus on the wording of the section and the factors listed.

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Weldon

11 months ago

Okay, I've got this. Encryption and digital signatures are definitely data-oriented security mechanisms, as they protect the data itself. Identity and access management and single sign-on are more about controlling access to the data, so I think those would also qualify as data-oriented. I'll select all four options.

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Jin

11 months ago

I think the issue might be related to the AAA server; we had a similar question about that in our practice quiz.

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Daniela

11 months ago

Based on the information provided, I think the correct answer is $410,000. The $100,000 for product packaging redesign seems to be part of the company's commitment to the environment, so I would include that as a charitable contribution.

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Billi

11 months ago

Hmm, I'm not entirely sure about this one. I'm debating between incident management and service request management. I'll have to think it through carefully.

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Virgie

1 year ago

Okay, let's think this through. The question is asking about the factors that directors must consider when promoting the success of the company. It seems like (D) covers all the bases, so that's gotta be the right answer. Time to move on to the next question!

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Beth

1 year ago

Let's go with (D) then, it covers all the important factors.

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Coral

1 year ago

Yeah, (D) seems like the most comprehensive choice here.

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Cherry

1 year ago

I think you're right, (D) covers all the factors that directors must consider.

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Lacresha

1 year ago

Haha, I bet the person who wrote this question is laughing at us all struggling to figure it out. They're probably sitting in their office sipping tea and chuckling to themselves. Oh well, at least I can use this as an excuse to take a coffee break.

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Domonique

1 year ago

C) (ii) and (iii) only

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Princess

1 year ago

B) (i) and (ii) only

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Venita

1 year ago

A) (i) only

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Chantell

1 year ago

Ugh, I hate questions about obscure sections of the Companies Act. Why can't they just ask something simple, like the definition of a limited liability company? This is making my head spin.

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Yuki

1 year ago

B) (i) and (ii) only

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Emily

1 year ago

A) (i) only

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Pamella

1 year ago

I think the answer is D) (i), (ii) and (iii)

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Gwenn

1 year ago

I know, these questions can be so frustrating sometimes.

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Myong

1 year ago

This question is a tricky one. The correct answer seems to be (D), but I'm not sure if I'm interpreting the law correctly. I better double-check my notes to make sure I don't mess this up.

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