CIMAPRA19-E01-1 Exam - 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

Show Suggested Answer

Suggested Answer: A, B, C

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

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Dorcas

6 months ago

Sounds too simple, are you sure it's not a Sole-trader?

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Zana

6 months ago

Wait, can they really have joint liability like that?

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Stefany

7 months ago

No way, it's a Partnership for sure!

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Joye

7 months ago

I think it's a Company, they pool resources too.

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Gene

7 months ago

Definitely a Partnership, they share profits and liabilities.

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Stanford

7 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

8 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

8 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

8 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

8 months ago

I'm pretty sure the adjacency SID is locally unique, so I'll go with option C.

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Cecilia

8 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

12 months ago

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

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Amber

12 months ago

I agree, they probably share profits and costs.

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Mignon

12 months 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

12 months ago

Partnership it is then, definitely not a multinational.

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Brandee

12 months 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

12 months ago

D) Multinational

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Louis

12 months ago

C) Partnership

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Zack

12 months 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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