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

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 agreedformula. 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?
A) Sole-trader and B) Company and C) Partnership
D) Multinational

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

Actual exam question for CIMA's CIMAPRA19-E01-1 exam
Question #: 72
Topic #: 3
[All CIMAPRA19-E01-1 Questions]

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?

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Suggested Answer: A, B, C

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

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Dorcas
8 months ago
Sounds too simple, are you sure it's not a Sole-trader?
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Zana
8 months ago
Wait, can they really have joint liability like that?
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Stefany
8 months ago
No way, it's a Partnership for sure!
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Joye
9 months ago
I think it's a Company, they pool resources too.
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Gene
9 months ago
Definitely a Partnership, they share profits and liabilities.
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Stanford
9 months ago
Multinational seems way off here. I’d go with partnership, but I hope I’m not mixing it up with companies.
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Abel
9 months ago
I’m a bit confused because sole traders also have liability, but they don’t pool income like this. I guess it’s not A or B.
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Teddy
9 months ago
I remember practicing a question about liability types, and partnerships definitely have joint and several liability. So, I’d lean towards option C.
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Linsey
10 months ago
I think this sounds like a partnership since they share profits and have joint liability, but I'm not entirely sure.
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Anglea
10 months ago
I'm pretty sure the adjacency SID is locally unique, so I'll go with option C.
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Cecilia
10 months ago
Creating the address style lookup and assigning the address style to the country seem pretty clear. But I'm a bit unsure about the flexible address code part - I'll have to double-check that in the materials.
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Ayesha
1 year 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 year 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
1 year ago
Yeah, it makes sense for them to be a partnership.
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Amber
1 year ago
I agree, they probably share profits and costs.
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Mignon
1 year ago
I think it's a partnership.
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Nelida
1 year 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
1 year ago
Partnership it is then, definitely not a multinational.
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Brandee
1 year ago
Yeah, I don't think it's a multinational either. Partnership makes more sense.
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Brittni
1 year ago
I agree, partnership seems like the best fit for this scenario.
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Chauncey
1 year 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
1 year ago
D) Multinational
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Louis
1 year ago
C) Partnership
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Zack
1 year ago
B) Company
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Yuette
1 year ago
A) Sole-trader
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Detra
1 year 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
1 year ago
I agree with Timothy, because in a partnership, profits are split according to an agreed formula.
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Tabetha
1 year 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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Edna
1 year ago
I agree, it does sound like a partnership. The income pooling and profit sharing are common in that type of organization.
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Renato
1 year ago
D) Multinational
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Ressie
1 year ago
C) Partnership
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Sherron
1 year ago
B) Company
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Tracey
1 year ago
A) Sole-trader
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Timothy
1 year ago
I think the organization F works for is a partnership.
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