CIMAPRA19-P03-1 Exam - Topic 3 Question 4 Discussion

Question

H is a senior production manager for PLtd which isabout to make a strategic decision on setting up a new production line requiring $3 millionof new specialist equipment.

H's daughter is friends with and goes to school withthe daughter of T, the sales manager in KKLtd. KK Ltd isa potential supplier ofthespecialist equipment that P Ltd requires.

T owns a holiday home. H's daughter regularly accompanies T's daughter on family vacations at this holiday home, all at T's expense.

H is theonly person working for P Ltd who is qualified to select the specialist equipment. KK Ltd will definitely bid for the sale.

What should H do?

Kimbery · Accepted Answer

D) H should declare an interest, giving details of his daughter's friendship with T's daughter, but should participate fully in theassessment process.

Kimbery · Answer

A) H should exclude KK Ltd from the bidding process.

Kimbery · Answer

B) H should declare an interest and withdraw from the assessment process.

Kimbery · Answer

C) H should permit KK Ltd to bid, but should insist that T should not be involved.