CIMA Exam CIMAPRA19-F03-1 Topic 1 Question 84 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 84
Topic #: 1

A national rail operating company has made an offer to acquire a smaller competitor.

Which of the following pieces of information would be of most concern to the competition authorities?

AAfter the acquisition, the board proposes to increase prices on some routes not serviced by other rail operators.

BAfter the acquisition, the board proposes to withdraw some of the less profitable services.

CThe board informed a major institutional shareholder about the proposed acquisition before informing other shareholders.

DThe acquisition is likely to result in significant redundancies of staff currently working for the smaller rail operator.

Show Suggested Answer

Suggested Answer: A

by Cordie at Apr 24, 2024, 10:49 PM

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Mignon

1 years ago

I think option C is also important. Disclosure to one shareholder before others could raise issues of fairness.

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Denny

1 years ago

I see both points. Option A could harm customers with increased prices, while option D affects employees.

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Whitney

1 years ago

I disagree, I believe option D is the most concerning.

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Jaclyn

1 years ago

I think the most concerning piece of information would be option A.

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Eugene

1 years ago

That could definitely be a significant issue as well.

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Felix

1 years ago

What about the potential job redundancies?

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Linwood

1 years ago

True, that could raise some red flags.

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Eugene

1 years ago

I think informing a major shareholder before others could also be a concern.

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Felix

1 years ago

Or if they withdraw less profitable services.

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Linwood

1 years ago

Maybe if they increase prices on routes not serviced by other rail operators?

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Eugene

1 years ago

What do you think would concern the competition authorities the most?

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Felix

1 years ago

That could lead to some major changes.

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Linwood

1 years ago

I heard the national rail company wants to acquire a smaller competitor.

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