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CIMAPRO19-P03-1 Exam - Topic 4 Question 4 Discussion

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

Question #: 4
Topic #: 4

[All CIMAPRO19-P03-1 Questions]

Which of the following best describes the conflict between maximising profit and maximising shareholder wealth?

AManagers are generally more interested in maximising shareholder wealth than in maximising profits or sales.

BProfit and shareholder wealth are unrelated.

CTax is paid on profit, but not on shareholder wealth.

DProfits can be increased from one year to the next without increasing shareholder wealth.

Show Suggested Answer

Suggested Answer: D

by Mitsue at May 03, 2022, 08:07 AM

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Jackie

8 months ago

Wow, I never realized profits could rise without boosting shareholder wealth!

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Alpha

9 months ago

A seems a bit off, aren't managers usually profit-driven?

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Tequila

9 months ago

C is interesting, didn't think about taxes that way.

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Thaddeus

9 months ago

Totally disagree with B, they're definitely related!

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Lacey

9 months ago

D is spot on! Profits don't always equal wealth.

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Elinore

9 months ago

I'm pretty confident that A and C are the right answers. Data filtering logs and SaaS reports don't seem directly relevant to C&C hosts.

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Albina

10 months ago

I'm not entirely sure, but I recall something about IIS logs. They might be common, but I'm not confident if they're the right choice here.

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