CIMAPRA19-F03-1 Exam - Topic 6 Question 50 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 50
Topic #: 6

The competition authorities are investigating the takeover of Company Z by a larger company, Company Y.

Both companies are food retailers.

The takeoverterms involve using a part cash, part share exchange means of payment.

CompanyZ is resisting the bid, arguing that it undervalues its business, while lobbying extensively among politicians to sway publicopinion against the bidder.

Which of the following actions by Company Y is most likely topersuade the competition authorities to approve the acquisition?

ACompany Y increases the cash element of its bid offer.

BCompany Yagrees to dispose of specified outlets which geographically overlap those of Company Z.

CCompany Y guarantees to preserve employment at its cental distribution depot.

DCompany Y undertakes to pass on any cost savings to customers.

Show Suggested Answer

Suggested Answer: B

by Kris at May 05, 2022, 04:58 AM

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5 months ago

This question seems straightforward, but I want to make sure I understand the difference between the two approaches before selecting an answer.

upvoted 0 times

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I'm a little confused by the 45% markup over wholesale. Does that mean the retail price is 145% of the wholesale price? Or is it something else? I want to make sure I have the right approach before I start solving this.

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Francine

5 months ago

Hmm, I'm not entirely sure about this one. The options seem a bit technical, so I'll need to draw on my knowledge of desktop memory and storage systems to figure this out.

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CIMAPRA19-F03-1 Exam - Topic 6 Question 50 Discussion

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