CIMAPRA19-E03-1 Exam - Topic 2 Question 24 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam

Question #: 24
Topic #: 2

P owns an internet-based business, called GWiz. based in Country G. GWiz sells gifts, cards and flowers for a variety of occasions including birthdays, weddings and many other special events. P sources her products from a variety of partner suppliers located throughout country G. Customers' orders are delivered by third party couriers across the whole country. The GWiz website is hosted and managed by an IT specialist

P is a member of a local small business trade federation and has been asked to make a presentation to its members on her experience of running GWiz as a 'virtual organisation'.

Which of the following statements could P correctly make on the benefits of virtual organisations?

Select ALL that apply.

AThe quality of the products and services offered by the partner suppliers is always guaranteed and easy to control.

BUsing partner suppliers who also supply products and services to competitors will help to increase the competitive advantage of the virtual organisation.

CThe costs of operating a virtual organisation are relatively low as there is no need to operate from large premises or employ its own staff.

DA virtual organisation can look much larger than it actually is through the use of a range of partner suppliers and third party couriers.

EUsing the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

Show Suggested Answer

Suggested Answer: C, D, E

by Carin at May 03, 2022, 08:05 PM

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5 months ago

Option D seems risky; blackmail could lead to legal trouble, but sometimes pressure tactics are all people have left.

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