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

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?
D) H should declare an interest, giving details of his daughter's friendship with T's daughter, but should participate fully in theassessment process.
A) H should exclude KK Ltd from the bidding process.
B) H should declare an interest and withdraw from the assessment process.
C) H should permit KK Ltd to bid, but should insist that T should not be involved.

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

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 95
Topic #: 2
[All CIMAPRO19-P03-1 Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: D

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

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Walton
8 months ago
I wonder how this will affect their friendship!
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Herminia
8 months ago
Excluding KK Ltd seems too harsh, though.
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Cammy
8 months ago
Wait, is it really that simple?
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Dalene
8 months ago
Totally agree, transparency is key!
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Laurena
9 months ago
H should definitely declare an interest.
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Blossom
10 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.
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Alfreda
10 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.
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Bernardine
10 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.
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Thaddeus
10 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.
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Terrilyn
10 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.
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Gretchen
11 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.
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Kiera
11 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.
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Dong
11 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.
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Paulina
11 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.
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Stephaine
12 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.
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Kathrine
8 months ago
Exactly! Just keep it transparent.
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Phillip
9 months ago
I agree, option C sounds fair. No need to cut them out completely.
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King
9 months ago
Yeah, T should definitely step back from this.
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Rosita
9 months ago
Good call! It keeps things professional.
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Denna
1 year 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.
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Lili
11 months ago
I agree, as long as there is transparency, it should be fine.
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Kati
12 months ago
I think H should declare the interest and still be involved in the assessment process.
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Gracie
1 year ago
Gracieut whSkyet if KK Ltd is the Gracieest supplier for the equipment?
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Skye
1 year ago
I think H should exclude KK Ltd from the bidding process.
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Mose
1 year 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.
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Valda
12 months ago
A) H should exclude KK Ltd from the bidding process.
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