CIMAPRO19-P03-1 Exam - Topic 2 Question 95 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 95
Topic #: 2

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?

AH should exclude KK Ltd from the bidding process.

BH should declare an interest and withdraw from the assessment process.

CH should permit KK Ltd to bid, but should insist that T should not be involved.

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

Show Suggested Answer

Suggested Answer: D

by Jeanice at Aug 04, 2025, 01:38 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Walton

2 months ago

I wonder how this will affect their friendship!

upvoted 0 times

...

Herminia

2 months ago

Excluding KK Ltd seems too harsh, though.

upvoted 0 times

...

Cammy

3 months ago

Wait, is it really that simple?

upvoted 0 times

...

Dalene

3 months ago

Totally agree, transparency is key!

upvoted 0 times

...

Laurena

3 months ago

H should definitely declare an interest.

upvoted 0 times

...

Blossom

4 months ago

I wonder if H could just declare the friendship and still participate? It seems like that might be an option, but I'm not confident about the implications.

upvoted 0 times

...

Alfreda

4 months ago

This reminds me of a practice question where a manager had to deal with a similar conflict. I think the best option is to declare the interest and withdraw from the assessment.

upvoted 0 times

...

Bernardine

4 months ago

I'm not entirely sure, but I think allowing KK Ltd to bid while excluding T might still raise questions. It feels like a gray area.

upvoted 0 times

...

Thaddeus

5 months ago

I remember discussing conflicts of interest in class, and this situation seems pretty clear-cut. H should probably declare an interest and step back from the process.

upvoted 0 times

...

Terrilyn

5 months ago

I think the best approach is to declare the interest, but still participate fully in the assessment. As long as I'm transparent about the situation, I can still do my job effectively.

upvoted 0 times

...

Gretchen

5 months ago

Declaring the interest and withdrawing from the assessment process seems like the safest option. That way, there's no question of bias or favoritism.

upvoted 0 times

...

Kiera

5 months ago

I've got a good handle on this. The ethical thing to do is to exclude KK Ltd from the bidding process to avoid any appearance of impropriety.

upvoted 0 times

...

Dong

5 months ago

Hmm, I'm a bit confused. There seem to be a few different options, and I'm not sure which one is the best approach. I'll need to think this through carefully.

upvoted 0 times

...

Paulina

6 months ago

This is a tricky situation. I'll need to carefully consider the potential conflicts of interest and how to maintain objectivity in the assessment process.

upvoted 0 times

...

Stephaine

6 months ago

I'd go with option C. Keep KK Ltd in the running, but make sure T isn't involved. Seems like a reasonable compromise to me.

upvoted 0 times

Kathrine

3 months ago

Exactly! Just keep it transparent.

upvoted 0 times

...

Phillip

3 months ago

I agree, option C sounds fair. No need to cut them out completely.

upvoted 0 times

...

King

4 months ago

Yeah, T should definitely step back from this.

upvoted 0 times

...

Rosita

4 months ago

Good call! It keeps things professional.

upvoted 0 times

...

Denna

7 months ago

Option D is the correct answer. H should be upfront about the relationship, but still participate in the assessment. As long as he's transparent, he can still do his job effectively.

upvoted 0 times

Lili

6 months ago

I agree, as long as there is transparency, it should be fine.

upvoted 0 times

...

Kati

6 months ago

I think H should declare the interest and still be involved in the assessment process.

upvoted 0 times

...

Gracie

7 months ago

Gracieut whSkyet if KK Ltd is the Gracieest supplier for the equipment?

upvoted 0 times

...

Skye

7 months ago

I think H should exclude KK Ltd from the bidding process.

upvoted 0 times

...

Mose

7 months ago

I think option B is the way to go. H can't be involved in this decision-making process, it's just too much of a conflict of interest. Withdrawing is the ethical thing to do.

upvoted 0 times

Valda

6 months ago

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

upvoted 0 times

...