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CIMAPRA19-E03-1 Exam - Topic 3 Question 59 Discussion

STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)
B) Divestment
A) Liquidation
C) Retrenchment
D) Facilitation
E) Turnaround

CIMAPRA19-E03-1 Exam - Topic 3 Question 59 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 59
Topic #: 3
[All CIMAPRA19-E03-1 Questions]

STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.

Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

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Suggested Answer: B

by Glenna at Oct 28, 2022, 07:00 AM

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Marnie
10 months ago
Divestment seems like a stretch; they just cut services.
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Elly
10 months ago
Definitely a retrenchment strategy, no doubt about it.
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Sena
10 months ago
Wait, they stopped counselling services? That's surprising!
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Dong
11 months ago
Totally makes sense, they had to prioritize!
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Rosina
11 months ago
STU cut staff by 20% to save costs.
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Keneth
11 months ago
I practiced a similar question where a company had to downsize, and I think retrenchment was the right answer there too.
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Tabetha
11 months ago
The term "turnaround" sounds familiar, but I feel like that usually means improving performance, not just cutting services.
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Irma
11 months ago
I'm not entirely sure, but I think divestment might involve selling off parts of the hospital, which they haven't done here.
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Josefa
11 months ago
I remember studying about retrenchment strategies, and it seems like STU is definitely cutting costs by reducing staff.
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Janine
11 months ago
Hmm, the decision table's spreadsheet metaphor could be a plus for end users, but I'm not sure if that's the most important consideration here. I'll need to think through the other options carefully.
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Elin
11 months ago
Okay, let's see. I know the instance type determines the memory size, so that's probably the right answer. The other options seem like they could potentially be changed without changing the instance type.
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