Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMAPRA19-F03-1 Exam - Topic 5 Question 65 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 65
Topic #: 5
[All CIMAPRA19-F03-1 Questions]

Companies L. M N and O:

* are based in a country that uses the RS as its currency

* have an objective to grow operating profit year on year

* have the same total levels of revenue and cost

* trade with companies or individuals in the United States. All import and export trade with companies or individuals in the United States is priced in US$.

Typical import/export trade for each company in a year are as follows:

Which company's growth objective is most sensitive to a movement in the USS / RS exchange rate?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, E

by Leota at Feb 27, 2023, 01:05 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Julianna
7 months ago
Totally agree, Company M seems like the obvious choice here!
upvoted 0 times
...
Alpha
7 months ago
Wait, are we sure the exchange rate impacts all companies equally?
upvoted 0 times
...
Osvaldo
7 months ago
Company O's growth could really take a hit with a weaker RS.
upvoted 0 times
...
Dudley
7 months ago
I think Company N might be more affected due to its import reliance.
upvoted 0 times
...
Shenika
8 months ago
Company M has the highest export volume, so it's definitely sensitive to exchange rates.
upvoted 0 times
...
Melvin
8 months ago
I feel like Company O could be the answer since it had significant export activities, but I’m not confident about the specifics.
upvoted 0 times
...
Margarett
8 months ago
This question reminds me of a practice question where we analyzed how different companies' revenue streams were affected by currency movements. I think Company N might be similar.
upvoted 0 times
...
Cordie
8 months ago
I’m not entirely sure, but I think Company M had the highest volume of trade with the US, which might make it more sensitive to exchange rate changes.
upvoted 0 times
...
Cherilyn
8 months ago
I remember we discussed how exchange rate fluctuations can impact profit margins, especially for companies heavily reliant on imports or exports.
upvoted 0 times
...
Dick
8 months ago
Okay, I think I've got a strategy for this. I'll focus on creating separate rules for Accounting and Sales, and then using the Objects tab to apply them only to those departments.
upvoted 0 times
...
Jennie
8 months ago
I'm a little confused by the wording of the question and the answer choices. Can a job worth hierarchy really do all of those things? I'm not sure which one is the best description. I may have to guess on this one.
upvoted 0 times
...
Margurite
8 months ago
Okay, I've got this. Both static and dynamic analysis usually involve using a tool, and they're both related to reviews in some way. I'll focus on those similarities.
upvoted 0 times
...
Katlyn
1 year ago
The answer is clearly D. Company O has the most trade in USD, so their profits will be the most affected by changes in the exchange rate.
upvoted 0 times
Alaine
11 months ago
The answer is clearly D. Company O has the most trade in USD, so their profits will be the most affected by changes in the exchange rate.
upvoted 0 times
...
Carin
11 months ago
D) Company O
upvoted 0 times
...
Golda
12 months ago
C) Company N
upvoted 0 times
...
Man
12 months ago
B) Company M
upvoted 0 times
...
Gail
12 months ago
A) Company L
upvoted 0 times
...
...
Roslyn
1 year ago
C'mon, it's pretty obvious that Company O is the one to watch here. Their numbers show they're the most exposed to the USD/RS exchange rate.
upvoted 0 times
Myra
12 months ago
Definitely, Company O needs to closely monitor the USD/RS exchange rate for their growth objective.
upvoted 0 times
...
Rodrigo
1 year ago
Yeah, their import and export numbers with the US are the highest among the companies.
upvoted 0 times
...
Helaine
1 year ago
I agree, Company O seems to be the most sensitive to the exchange rate.
upvoted 0 times
...
...
Erinn
1 year ago
Haha, I bet Company O's accountant is sweating bullets every time the exchange rate fluctuates. Gotta love those global trade challenges!
upvoted 0 times
Willetta
11 months ago
It's a tough spot to be in, but it's all part of the game when you're involved in global trade.
upvoted 0 times
...
Karan
11 months ago
I think Company O needs to come up with a solid currency risk management strategy.
upvoted 0 times
...
Adolph
11 months ago
Yeah, Company O must have a tough time managing their profits with the fluctuating exchange rates.
upvoted 0 times
...
Janine
11 months ago
Company O's growth objective is definitely the most sensitive to exchange rate movements.
upvoted 0 times
...
Emiko
12 months ago
It's a tough spot to be in, but I guess it comes with the territory of international trade.
upvoted 0 times
...
Kristin
12 months ago
I wonder how they hedge against those risks, it must be a constant challenge for them.
upvoted 0 times
...
Asuncion
1 year ago
Yeah, Company O must have a tough time managing their profits with all that currency fluctuation.
upvoted 0 times
...
Francene
1 year ago
I agree, global trade definitely adds an extra layer of complexity to their growth objectives.
upvoted 0 times
...
Tarra
1 year ago
Company O's accountant must be on edge with those exchange rate fluctuations!
upvoted 0 times
...
Vicente
1 year ago
Company O's growth objective is definitely the most sensitive to exchange rate movements.
upvoted 0 times
...
...
Lenita
1 year ago
But Company O also has a significant amount of trade with the United States. It could also be sensitive to the exchange rate.
upvoted 0 times
...
Leana
1 year ago
I agree with you, Kara. Company M has the highest proportion of import and export trade with the United States.
upvoted 0 times
...
Timmy
1 year ago
Company O's growth objective is the most sensitive to the USD/RS exchange rate movement. They have the highest proportion of exports and imports in USD compared to the other companies.
upvoted 0 times
Glory
1 year ago
It's important for Company O to closely monitor exchange rate fluctuations to protect their growth objective.
upvoted 0 times
...
Jade
1 year ago
Company L, M, and N are not as impacted because their trade is more balanced.
upvoted 0 times
...
Galen
1 year ago
That makes sense, since they have the highest exposure to USD in their trade.
upvoted 0 times
...
Salina
1 year ago
Company O is definitely the most affected by exchange rate movements.
upvoted 0 times
...
...
Kara
1 year ago
I think Company M's growth objective is most sensitive to the exchange rate.
upvoted 0 times
...

Save Cancel