Online Access Free P3 Exam Questions

Select the correct ethical principle that corresponds to each ethical dilemma described.

Correct Answer:

Company directors who exercise executive share options generally resell the shares immediately, rather than holding them. Which of the following best explains this behavior?

• A.It is a conflict of interest for directors to be shareholders.
• B.The directors receive a risk-free gain
• C.Shareholders become nervous when the directors hold shares
• D.The shares are out of the money at the exercise date

The government health service in country H employs well over 100,000 staff in various locations throughout the country. Traditionally, local management has had high levels of autonomy in relation to personnel issues and there are several different human resources (HR) managers located across various regions.
The government has decided to introduce a completely new HR/payroll information system to have just one database containing all relevant information about every staff member on the payroll (start date, job title, salary and all other details) and to use this information to begin streamlining recruitment and HR policies.
The government has outsourced the system's development to a reputable company.
Which of the following are disadvantages associated with this IT project?

• A.Any initial problems in running the system could have serious repercussions as it could lead to, for example, staff not being paid, payroll tax not being properly collected, and similar difficulties.
• B.The amount of data storage space required to run the system may not be available.
• C.The government is very heavily dependent on the contractor to whom this assignment is outsourced and if they do not to perform as required this could have serious consequences.
• D.There is a risk that significant anomalies in the current system will be highlighted.
• E.There is a risk that the system will not capture all of the existing terms and conditions of staff, thus leading to industrial relations problems later.
• F.The system could make it more difficult to employ specialist medical staff on terms and conditions which are different from the normal terms and conditions available.

Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes.

Correct Answer:

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

• A.The shares have less unsystematic risk than the stock market average.
• B.The shares have more unsystematic risk than the stock market average.
• C.The shares have more total risk than the stock market average.
• D.The shares have more systematic risk than the stock market average.