AAFM Exam GLO_CWM_LVL_1 Topic 2 Question 89 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 89
Topic #: 2

P Ltd sets the target to produce 1000 tones of steel during the next six months to recover the cost but there is a possibility that due to strikes and lockouts the targeted output may not be archived. What type of risk is associated with the production process?

APure Risk

BSpeculative Risk

CLiability Risk

DAll the above

Show Suggested Answer

Suggested Answer: B

by Tambra at Sep 19, 2024, 12:34 PM

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Jacinta

1 months ago

I'm feeling lucky, so I'm going with B) Speculative Risk. After all, who doesn't love a good gamble? Strikes and lockouts are like the dice rolling in this production process casino. Fingers crossed for a jackpot!

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Stevie

1 months ago

I'm going with A) Pure Risk. Strikes and lockouts are events outside the company's control, so it's a pure risk that could disrupt the production process. It's like trying to predict the weather - good luck with that!

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Wai

1 months ago

Definitely B) Speculative Risk. This is a classic example of a situation where the company is taking a calculated risk in the hopes of recovering their costs. I hope the production team has a contingency plan in place!

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Merlyn

3 days ago

The production team should definitely have a contingency plan.

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Lettie

21 days ago

I agree, it's definitely B) Speculative Risk.

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Lanie

1 months ago

The answer has to be D) All the above. The production process can be affected by pure risks like natural disasters, speculative risks like market fluctuations, and liability risks like workplace accidents.

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Devorah

6 days ago

By being aware of different types of risks, P Ltd can better prepare for any potential disruptions in the production process.

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Mariko

8 days ago

It's important for P Ltd to consider all possible risks when setting production targets.

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Eden

14 days ago

I agree, the production process can be affected by various types of risks.

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Bulah

2 months ago

I think the correct answer is B) Speculative Risk. The question mentions the possibility of not achieving the targeted output due to strikes and lockouts, which is a speculative risk that can result in either a gain or a loss.

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