CIMA Exam CIMAPRA19-E01-1 Topic 3 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam

Question #: 72
Topic #: 3

F managesa portfolio of clients, as do his colleagues. All income that is earnedby themis pooled to cover costs and overheads and any remaining profits are splitaccording toan agreedformul

a. F and hiscolleagueshave joint and several liability in relation to the work they carryouton the organisation's behalf. Which of the organisation types listed below best describes the organisation that F works for?

ASole-trader

BCompany

CPartnership

DMultinational

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Suggested Answer: A, B, C

by My at Jul 29, 2023, 03:11 AM

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Ayesha

1 months ago

I don't know, maybe they're a bunch of sole traders who got together and decided to call themselves a 'portfolio of clients'. Sounds like a fancy way of saying they're freelancers.

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Arlen

1 months ago

I'm with Nelida on this one. Multinational? What, are they managing a portfolio of clients in different countries or something? Definitely a partnership.

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Nydia

11 days ago

Yeah, it makes sense for them to be a partnership.

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Amber

15 days ago

I agree, they probably share profits and costs.

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Mignon

17 days ago

I think it's a partnership.

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Nelida

1 months ago

Ha! Multinational, really? This sounds like a small local business, not a global corporation. I'm going with partnership as the best answer.

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Kattie

14 days ago

Partnership it is then, definitely not a multinational.

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Brandee

17 days ago

Yeah, I don't think it's a multinational either. Partnership makes more sense.

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Brittni

1 months ago

I agree, partnership seems like the best fit for this scenario.

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Chauncey

2 months ago

Hmm, I'm not so sure. The joint and several liability aspect makes me think it could be a company, where the members are all liable for the organization's actions.

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Reita

7 days ago

D) Multinational

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Louis

11 days ago

C) Partnership

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Zack

12 days ago

B) Company

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Yuette

1 months ago

A) Sole-trader

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Detra

2 months ago

But doesn't joint and several liability also apply to partnerships? So it could be a partnership or a company.

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Georgeanna

2 months ago

I agree with Timothy, because in a partnership, profits are split according to an agreed formula.

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Tabetha

2 months ago

This sounds like a partnership to me. The income is pooled and the profits are split according to an agreed formula, which is a key characteristic of a partnership.

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