Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMA Exam CIMAPRA19-F03-1 Topic 7 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 105
Topic #: 7
[All CIMAPRA19-F03-1 Questions]

MAN is a manufacturing company that is based in country M and sells almost exclusively to customers in country M, priced in the local currency, M$.

MAN wishes to expand the business by acquiring a company that manufactures similar products but has a more global customer base. It is particularly interested in selling to customers in country P, which uses currency P$ but recognises that the P$ is generally quite volatile against the M$.

Country P uses the same language as country M, has free entry of labour from country M,no exchange controls or withholding tax and a favourable double tax treaty.

Which of the following companies would be most suitable takeover candidates for MAN to investigate further?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, D

Contribute your Thoughts:

Option A seems like the obvious choice here. A company based in country M with a global customer base, including country P, would have the necessary experience and infrastructure to help MAN expand into the P$ market.
upvoted 0 times
...
Dustin
3 days ago
That's a good point, but I still think option B is more aligned with MAN's goal of expanding into country P.
upvoted 0 times
...
Yen
4 days ago
I disagree, I believe option A would be better because it already has a global customer base.
upvoted 0 times
...
Dustin
10 days ago
I think option B is the most suitable candidate.
upvoted 0 times
...

Save Cancel