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CIMA Exam CIMAPRA19-P03-1 Topic 4 Question 68 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 68
Topic #: 4
[All CIMAPRA19-P03-1 Questions]

H Ltdis a company providing postal and courier services to small businesses. Customers pay a monthly or annual subscription fee to use the service, plusaverysmall fee for each item delivered.

A year ago, H employed a newsalesteam. Their remuneration is dependent on the number of new customers they sign up. Sales increased dramatically in the first six months, but nowdifficulties are emerging such as new customers dropping their subscription once the initial period has expired; subscriber direct debits being returned unpaid; subscribers going out of business and other similar issues.

Which of the following would be appropriate to help resolve these problems?

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

by Janae at Apr 04, 2025, 09:45 PM

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Micah
22 days ago
The 'subscribers going out of business' part cracks me up. Guess H Ltd needs to be better at picking their customers. I'd go with option B - a credit check is a must.
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Pansy
22 hours ago
Yeah, a credit check would definitely help with those unpaid direct debits.
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Rashida
26 days ago
This is a tough one, but I reckon option C might be the best bet. Gotta keep those salespeople hungry for new customers, you know?
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Chun
1 months ago
Haha, the 'new customer dropping their subscription' problem reminds me of my gym membership. Anyway, I think option E is the way to go - transparent performance reports will keep the sales team on their toes.
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Franchesca
3 days ago
I agree, it's important for the sales team to see how their customers are doing.
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Ona
16 days ago
Option E sounds like a good idea. Transparency is key.
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Jovita
1 months ago
Hmm, I don't know about that. Reducing the commission for sales folks could backfire and make them less motivated. Maybe option D, where the commission is tied to long-term customer retention, would be better.
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Carmen
22 hours ago
That's true. Option B could definitely help with reducing the number of customers who end up causing problems down the line.
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Ngoc
8 days ago
But what about option B? Conducting a credit check could help prevent issues with unpaid direct debits and customers going out of business.
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Alisha
27 days ago
I think option D could work well. It would incentivize the sales team to focus on long-term customer retention.
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Sage
1 months ago
I think option C could also be effective. It would motivate the sales team to sign up quality customers.
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Sueann
1 months ago
This seems like a tricky one. I'd go with option B - a credit check is a good way to weed out the unreliable customers upfront.
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Trinidad
22 days ago
B) Ensure that a credit check is carried out before a subscriber is accepted.
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Quinn
2 months ago
I agree with Alpha. Option B could help reduce the number of unpaid direct debits.
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Alpha
2 months ago
I think option B is a good idea. We need to make sure we are accepting reliable subscribers.
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