CIMAPRA19-P03-1 Exam - Topic 4 Question 75 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 75
Topic #: 4

[All CIMAPRA19-P03-1 Questions]

James owns a small company which sometimes suffers from credit risk.

Which of the following measures should he put in place to help reduce this risk?

AIntroduce credit checks for new customers.

BReduce the company bank loans.

CPay suppliers' invoices quicker.

DLook for a loan with a lower interest rate.

Show Suggested Answer

Suggested Answer: A

by Ahmed at Oct 27, 2025, 11:32 AM

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Danilo

2 days ago

C is good for relationships, but doesn’t reduce credit risk directly.

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Meghan

7 days ago

B could help too, but it’s not as direct.

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Wilbert

26 days ago

Agreed, A helps assess customer reliability.

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Sommer

1 month ago

Totally agree with A and C, those are solid moves!

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Janine

1 month ago

Lower interest loans? Sounds too good to be true...

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Ettie

1 month ago

Paying suppliers faster could actually improve relationships!

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Linwood

2 months ago

I don't think reducing bank loans will help much.

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Teri

2 months ago

A) Introduce credit checks for new customers. Gotta know who you're dealing with, am I right?

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Aron

2 months ago

D) Look for a loan with a lower interest rate. This will save the company money in the long run.

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Cherrie

2 months ago

B) Reduce the company bank loans. This will lower the overall debt and associated risk.

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Hobert

2 months ago

A) Introduce credit checks for new customers. This is the most effective way to reduce credit risk.

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Von

2 months ago

I feel like looking for a loan with a lower interest rate might just be a temporary fix. It doesn't really address the core issue of credit risk.

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Margurite

3 months ago

Paying suppliers' invoices quicker seems like it could help with cash flow, but I'm not convinced it really reduces credit risk overall.

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Roosevelt

3 months ago

I'm not entirely sure, but I remember something about reducing bank loans possibly not directly impacting credit risk.

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Quentin

3 months ago

I think A is the best option. Credit checks are essential.

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Buddy

3 months ago

A) Credit checks are a must for new customers!

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Kattie

4 months ago

C) Pay suppliers' invoices quicker. This will help maintain good relationships with suppliers.

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Tresa

4 months ago

I think introducing credit checks for new customers is definitely a good idea. It helps assess their reliability before extending credit.

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Justa

4 months ago

I feel pretty good about this question. I think the credit checks for new customers is the clearest way to address the credit risk issue described.

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Kenneth

4 months ago

Looking for a loan with a lower interest rate doesn't seem directly related to reducing credit risk. I'm a bit confused on how that would help in this situation.

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Kiley

5 months ago

Paying suppliers' invoices quicker seems like it might help, but I'm not sure how much that would really impact the credit risk. I'd need to think that one through more.

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