Page 253 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Exam style questions and answers

2 DD runs two theme parks with roller coasters, a zoo and a water park attached

to them. A very well-known animal rights group recently commissioned a study
on the effects of keeping wild animals in close proximity to theme park rides
such as those at DD’s parks. This study concluded that the rides caused much
distress to the animals and shortened their life expectancy by a considerable
amount.

The group ensured that the study was widely publicised and one of the main
Sunday papers subsequently launched a campaign to persuade DD to either
move the animals to more suitable locations or gift them to various animal
sanctuaries around the world.

The board of DD have yet to respond to the newspaper campaign but are under
great pressure to do so. They have met to decide on the least risky course of
action but find they are unable to agree.

The board are aware of the popularity of the animals, particularly amongst
younger visitors and they are also concerned about what would fill the zoo
‘space’ if the animals were no longer there. DD does not have any resources to
invest in the parks at this time.

Eventually the board have decided to do nothing at present but release a
statement to the media explaining that they intend to commission their own
research into the animals’ welfare.

Which of the following are risks to DD of pursuing this course of action?
Select all that apply.

A Risk that visitor numbers to the parks decrease since DD is seen to be
responding slowly.

B Further, possibly more direct action by the animal rights group.

C Risk of tightening of legislation regarding the keeping of wild animals.

D Ongoing negative publicity from the Sunday paper concerned.

E Risk of empty space in DD’s theme parks.

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