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CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 110 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 110
Topic #: 1
[All CIMAPRA19-F01-1 Questions]

Which of the following is a characteristic of a defined contribution post-employment benefit scheme?

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Suggested Answer: A

Contribute your Thoughts:

Loise
4 days ago
B seems like the most logical choice to me. The employer has to step in if the funds are insufficient. I'd rather not depend on the whims of the stock market, thank you very much.
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Patria
4 days ago
Ha! D is clearly the funniest option. The employer can just take a 'contributions holiday' if the assets are sufficient. Like a paid vacation, but for the company!
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Avery
8 days ago
C is the answer, no doubt about it. The benefits are determined by a predefined formula, not investment performance. This exam is a piece of cake!
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Ryann
13 days ago
That's a valid point, but I still think A) is more likely based on the characteristics of defined contribution schemes.
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Pete
13 days ago
I disagree, I believe the answer is C) because benefits should be predetermined.
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Ryann
17 days ago
I think the answer is A) because it makes sense for benefits to depend on investments.
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Charlene
21 days ago
Hmm, I thought option B was the right one. The employer has to cover any shortfall in the funds, not the employees. What a drag!
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Denny
2 days ago
User 1: I think option A is correct. The benefits depend on how well the investments perform.
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Gerald
27 days ago
Option A is the correct answer. The amount of benefits paid depends on the scheme's investment performance, not a predefined formula.
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Gwenn
12 hours ago
I think the correct answer is A) The amount of the post-employment benefits paid to former employees depends on how well the scheme's investments have performed.
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