R01 Evaluating outcomes, MI and stakeholders (CSR): free practice questions

1. Question 1 of 5

   Which qualities should management information on ethics have?

   Option A: Accurate, timely, relevant and consistentOption B: Anonymous, informal, verbal and optionalOption C: Positive, promotional, brief and annualOption D: Lengthy, technical, confidential and occasional

   Show answer

   The answer is A: Accurate, timely, relevant and consistent

   Good MI is accurate (clear data, correctly attributed), timely, relevant (gives actionable insight) and consistent (regular enough to show trends).

   Why the other options are wrong

   B

   MI should be structured and recorded.

   C

   MI should be honest, not promotional.

   D

   Length and technical language don't make MI useful.

2. Question 2 of 5

   Why should sales MI be split by product line and month?

   Option A: To spot unusual changes that may point to mis-sellingOption B: To make it easier to hide falling sales of a single productOption C: Because the FCA requires every firm to use a set report layoutOption D: To make the monthly report longer and look more thorough

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   The answer is A: To spot unusual changes that may point to mis-selling

   Breaking sales down by product and month shows unusual surges or drops, which can point to mis-selling. One combined figure hides these.

   Why the other options are wrong

   B

   Splitting it out makes such changes visible, not hidden.

   C

   The point is insight, not a set format.

   D

   Length isn't the aim.

3. Question 3 of 5

   A firm checks for signs of vulnerability in a product's target market. Which Consumer Duty outcome does this evidence most directly?

   Option A: Consumer understandingOption B: Products and servicesOption C: Price and valueOption D: Consumer support

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   The answer is D: Consumer support

   Checking for vulnerability evidences the consumer support outcome. Customer journeys evidence products and services; price compared with profitability evidences price and value; engagement with communications evidences understanding.

   Why the other options are wrong

   A

   Consumer understanding is shown by engagement with communications.

   B

   Products and services is shown by customer journeys through a product's life.

   C

   Price and value is shown by how price relates to profitability.

4. Question 4 of 5

   Which behaviour shows a firm's decision making is 'open to challenge'?

   Option A: Staff feel unable to question decisions they think are unfair to customersOption B: Customer challenges are dismissed quickly without any real considerationOption C: Only senior managers may comment on decisions about customer issuesOption D: Staff can challenge decisions, and fair customer challenges are acted on

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   The answer is D: Staff can challenge decisions, and fair customer challenges are acted on

   Positive behaviour: management builds a culture where staff can challenge customer decisions, and the firm acts on customers' challenges when it's fair to do so.

   Why the other options are wrong

   A

   That is a negative behaviour.

   B

   That is a negative behaviour.

   C

   Challenge should be open to all staff.

5. Question 5 of 5

   What is the main point of a CSR programme?

   Option A: To improve the firm's performance by listening to stakeholdersOption B: To win community awards and local recognition for the firmOption C: To stop stakeholders raising awkward issues with the firmOption D: To produce an attractive annual CSR report for marketing use

   Show answer

   The answer is A: To improve the firm's performance by listening to stakeholders

   Awards and reports can follow, but the aim is to improve performance by listening and responding to stakeholders and turning what's learnt into better ways of working.

   Why the other options are wrong

   B

   Awards are a possible by-product, not the aim.

   C

   CSR is about engaging with stakeholders' issues, not silencing them.

   D

   A report is a possible by-product, not the aim.

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