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Exam Questions for CIMA-SCS Updated Versions With Test Engine
NEW QUESTION # 36
there are two strong dividend signals:
1) a reduction in the dividend per share signals that the company is in financial difficulties
2) a failure to pay a dividend at all signals that the company is very close to receivership
The company must take great care in setting dividend levels and ensure that the market is kept fully informed of future prospects
- A. M&m dividend irrelevancy theory
- B. Signalling effect
- C. Clientele effect
- D. The bird in the hand argument
Answer: B
NEW QUESTION # 37
Meatless Entrees (Rare Meatless Entrees)
- A. K
- B. R
- C. F
- D. I
Answer: B
NEW QUESTION # 38
Summer savory
- A. Similar to parsley
- B. Similar shape to parsley
- C. Use in italian sausage
- D. Similar flavor to thyme
Answer: D
NEW QUESTION # 39
Liquid measurements?
- A. 1 Gallon
- B. 1) Batch prepared Eggs
- C. Large green leaves that may be furry and velvety
- D. What's the temperature of water for yeast?
Answer: A
NEW QUESTION # 40
- Pay fixed sum per share to each LHD shareholder
- Would require Daistruk to raise finance unless under R$32m they currently hold
- Could impact gearing
- Easy to understand, most transparent and obvious
- A. Earnout payment method
- B. Earnings valuation
- C. Cash offer
- D. Translation risk
Answer: C
NEW QUESTION # 41
- Cost leadership = lowest cost possible
- Differentiation = USP
- Focus = Niche
- A. Porter's value chain
- B. Cyber security security measures
- C. Risks with inorganic growth
- D. Porter's generic strategies
Answer: D
NEW QUESTION # 42
- Staff recruitment needed for drone operators = expensive, need to know local laws, H&S
- Demand for drone deliveries could vary
- Public safety risk
- Cost of investment
- A. Threats to compliance with fundamental ethical principles
- B. Arguments for using internal audit department in fraud situations
- C. Impact of downtime for Daistruk IT system
- D. Strategic risks of Drone investment for Daistruk
Answer: D
NEW QUESTION # 43
- Scenario planning
- Stress testing
- A. Risk mitigation techniques
- B. Risks with Focus Strategy
- C. Risks with organic growth
- D. CIA triad (Cybersecurity)
Answer: A
NEW QUESTION # 44
1 TSP
- A. .88 - .99
- B. .38 - .62
- C. .13 - .37
- D. .63 - .87
Answer: A
NEW QUESTION # 45
Uncooked Poultry
- A. Yellow
- B. Green
- C. Blue
- D. Red
Answer: A
NEW QUESTION # 46
Not less then 120•F
- A. Manual Wash
- B. Manual Rinse
- C. Dropped Cookie
- D. Manual Sanitizing
Answer: B
NEW QUESTION # 47
- Effort needed to acquire new customers once initial customers have been converted
- A. Risks with Focus Strategy
- B. Risks with inorganic growth
- C. Risks with Cost Leadership Strategy
- D. Risks with organic growth
Answer: A
NEW QUESTION # 48
Gravies, Bread Dressing
- A. O
- B. J
- C. P
- D. R
Answer: A
NEW QUESTION # 49
- How much cash should be paid out to shareholders?
- Dividends or capital growth?
- Should dividend be cut and re-invested in +NPV projects?
- Currently at 83.6%
- A. Financing decisions
- B. Dividend decisions for Daistruk
- C. Disadv. of Currency Options
- D. Examples of financing decisions
Answer: B
NEW QUESTION # 50
- Borrow in one currency and deposit money in another currency
- Loan taken out today in R$ and cash converted to E$ today and transferred to Euro bank account and kept there until required
- Interest paid when funds are needed
- A. Types of decisions
- B. Benefits of netting
- C. Money Market hedge
- D. Translation risk
Answer: C
NEW QUESTION # 51
Cheese and Eggs (Fried Cheese and Eggs)
- A. True
- B. False
Answer: B
NEW QUESTION # 52
- Lack of transparency in offer value
- Difficult for LHD shareholders to assess if the value of shares being offered is fair
- No cash exchanged so not absolute
- More shares, so Daistruk shares will be diluted
- A. Advantages of preparing integrated report
- B. Disadvantages of share for share exchange
- C. Disadvantages of debt financing
- D. Advantages of debt over equity financing
Answer: B
NEW QUESTION # 53
- Rivalry among competitors
- Threat of new entrants
- Threat of substitute products
- Bargaining power of buyers
- Bargaining power of suppliers
- A. Reputational Risk
- B. Porter's 5 Forces
- C. Porter's value chain
- D. Porter's generic strategies
Answer: B
NEW QUESTION # 54
Oregano
- A. Small oval leaves
- B. Shape like pine needles
- C. Narrow leave
- D. Pointed and green leave
Answer: A
NEW QUESTION # 55
Sage
- A. Small rounded leaves with a flavor similar to Oregon
- B. Shape like pine needles
- C. Tiny holes caused by food acid during prolonged storage
- D. Large green leaves that may be furry and velvety
Answer: D
NEW QUESTION # 56
The pattern of the dividend payout should be irrelevant. As long as the companies continue to invest in positive NPV projects, the wealth of the shareholders should increase whether or not the company makes a dividend payment this year.
*investors are indifferent between dividends and capital gains so the dividend policy that the company pursues should be irrelevant
- A. M&M dividend irrelevancy theory
- B. Signalling effect
- C. Clientele effect
- D. The bird in the hand argument
Answer: A
NEW QUESTION # 57
- Net asset valuation
- Intangible assets
- Earnings based valuation
- Future free cashflows
- A. Advantages of earnout
- B. Types of valuation models
- C. Types of preference shares
- D. Disadv. of Currency Futures
Answer: B
NEW QUESTION # 58
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