Online Access Free P3 Practice Test

A hospital is part of a government provided health service which is free to patients. The management of the hospital is concerned with the need to minimise the risks to which the hospital is exposed from patient litigation.
In this context, which TWO of the following are appropriate steps to manage this risk?

• A.Ensuring that a policy is in place to transfer or discharge critically ill patients so as to minimise fatalities in the hospital.
• B.The management refuses to allow the hospital to participate in the Major Accident Plan for the city in which it is located. It believes the Plan could expose the hospital to excessive risk.
• C.Ensuring that patients undergoing procedures sign documentation to confirm that the risks have been explained to them and that they understand.
• D.Allocating a risk score to patients depending on age, general heath and similar consideration and refusing to admit patients whose risk score exceeds a certain threshold.
• E.Ensure that proper documentation is in place for all patients showing such details as symptoms, treatments, and test results.

A large department store has just discovered that the staff in the store coffee shop have been defrauding the company for the past three years. The six employees who work in the coffee shop have been keeping a proportion of the cash takings, concealing the theft by not recording all sales up in the till They shared the proceeds of this fraud between them The fraud was only uncovered when one of the employees left and his replacement reported the theft to management rather than becoming involved in the crime Which of the following best describes the role of the store's internal controls in the context of this fraud?

• A.The coffee shop should be closed down because it is impossible to control its revenues.
• B.Even a well-designed system can be overridden by collusion between employees
• C.The store's board of directors should face disciplinary action for failing to prevent this fraud
• D.This fraud indicates that there are serious shortcomings in the store's system of internal controls

V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.

Correct Answer:

P is a consulting firm that provides technical advice to the oil industry. The company has consulting teams that specialise in specific areas, namely drilling, off-shore, health and safety, oil well management and ng management. Each team's consultants are charged out to clients at the same daily rate.
The demand for different skill sets varies constantly due to factors such as movements in oil prices.
Exploration increases when the oil price rises and there is a greater focus on maintaining existing wells when the price fans.
The performance of P's sales team is measured in terms of revenue, based on the number of consultancy days sold Frequently the sales team agree to contracts without first checking that the relevant consulting team has consultants available. The work then has to be undertaken by subcontractors at P's expense. Sub-contractors cost more and their use can also lead to P's own consultants being under-utilised when assignments could have been scheduled more efficiently.
Which TWO of the following would correct this behavior?

• A.Employ the sub-contractor stall as lull time P employees.
• B.Measure the performance of P's sales team on margin contribution rather than revenue.
• C.Allow P's consultants to go out on any job, regardless of specialism.
• D.Award additional incentives for selling P's own staff
• E.Reduce the number of consultants within P's teams.

RFD, a listed company, is considering making an investment in a risky new venture. RFD has a substantial cash surplus that will be used to acquire the necessary resources. It is unlikely that RFD would have been able to raise finance for this investment because the company is already highly geared.
Which of the following statements about stakeholders' conflicting interests are true?

• A.RFD's lenders are likely to suffer a greater risk than RFD's equity investors.
• B.Neither RFD's shareholders or lenders are likely to have the means to prevent the directors from making this investment.
• C.RFD's existing employees are likely to enjoy a significant upside risk from this project.
• D.RFD's shareholders are exposed to the systematic risk from this project and the directors are exposed to total risk.
• E.The diversification of RFD's interests will reduce the risks for all stakeholders.