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Exam Code: F3
Exam Name: F3 Financial Strategy
Vendor: CIMA

60 Questions & Answers
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NEW QUESTION: 1
Which of the following is not a good procedure with regard to the use of the polygraph by investigators?
A. Withholding detailed information from the examinee
B. Telling the examinee how experienced the examiner is
C. Describing it as infallible
D. Working with the examiner as a team member
E. Pointing out its effectiveness
Answer: C

NEW QUESTION: 2
An organization is considering services it can successfully provide to its customers. One of the services, however, is deemed to be difficult to offer with a high degree of certainty of success. The organization has decided not to offer the service because of the risk in offering the service, and failing. What risk response is used in this scenario?
A. Avoidance
B. Transference
C. Sharing
D. Mitigation
Answer: A
Explanation:
Explanation/Reference:
Answer option D is correct.
This is an example of the avoidance risk response. Avoidance are preventive actions, workarounds, and decisions to avoid a negative risk event.
Answer option B is incorrect. Transference is a risk response that transfers the risk to a third party - usually for a fee.
Answer option C is incorrect. Mitigation is a risk response to reduce the probability and/or impact of a negative risk event.
Answer option A is incorrect. Sharing is a risk response that shares a positive risk event with another party.
Reference: PHR Exam prep, Pearson Education, ISBN: 978-0-7897-3677-2. Chapter 8: Risk Management.
Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US HR Body of Knowledge.
Chapter: Risk Management
Objective: Risk Management

NEW QUESTION: 3
Wendy's Sandwich Shop purchased an asset for $100,000 that has no salvage value and a 10-year life.
Wendy's effective income tax rate is 40 percent, and it uses the straight-line depreciation method for
income tax reporting purposes. Wendy's annual depreciation tax shield from the asset would be:
A. $6,000
B. $10,000
C. $2,000
D. $4,000
Answer: D
Explanation:
Choice "c" is correct. $4,000 annual depreciation tax shield.

Choices "a", "b", and "d" are incorrect, per the above calculation.

NEW QUESTION: 4
What is a Component ID?
A. the IBM assigned number representing a particular customer
B. the IBM ID of a product that is sold to the customer
C. the IBM ID of all or part of a product serviced by support
D. the RETAIN ID for a specific Level 3 team. i.e. change team
Answer: C


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