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

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

Question #: 59
Topic #: 3

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.)

ALiquidation

BDivestment

CRetrenchment

DFacilitation

ETurnaround

Show Suggested Answer

Suggested Answer: B

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

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Marnie

4 months ago

Divestment seems like a stretch; they just cut services.

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Elly

4 months ago

Definitely a retrenchment strategy, no doubt about it.

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Sena

4 months ago

Wait, they stopped counselling services? That's surprising!

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Dong

4 months ago

Totally makes sense, they had to prioritize!

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Rosina

4 months ago

STU cut staff by 20% to save costs.

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Keneth

5 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

5 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

5 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

5 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

5 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

5 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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