tHIS DOCUMENT CONTAINS MAC2602 ASSESSMENT 2 OF 20234SEMESTER 2 EXPECTED QUESTIONS AND ANSWERS. USING IT CORRECTLY AS A GUIDE WILL HELP YOU SCORE ABOVE 75% IN THIS ASSESSMENT.
Started on Wednesday, 29 March 2023, 11:16 AM
State Finished
Completed on Wednesday, 29 March 2023, 11:45 AM
Time taken 28 mins 39 secs
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Question 1 STA tutorials
Incorrect
Mark 0.00 out of 2.00
The development of an organisation’s strategy is influenced by different internal and external environmental factors. Which ONE of the
following combinations are ALL correct factors that will have an influence on the development of strategy regarding the internal
environment of an organisation?
(a) Corporate culture, technological environment, controls at organisation level and political environment.
(b) Social environment, economic environment, organisational leadership, HR policies and corporate culture.
(c) HR policies, controls at organisation level, industrial relations, and corporate culture.
(d) Organisational leadership, political environment, competitive environment, and social environment.
Select one:
a. Corporate culture, technological environment, controls at organisation level and political environment.
b. Organisational leadership, political environment, competitive environment, and social environment.
c. Social environment, economic environment, organisational leadership, HR policies and corporate culture.
d. HR policies, controls at organisation level, industrial relations, and corporate culture.
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STA tutorials
,Question 2
Correct
Mark 2.00 out of 2.00
Which ONE of the following explanations best describes sustainability for businesses?
(a) It is when all the products, processes and manufacturing activities meet customer needs, while at the same time treating the
environment in such a manner that it does not decrease the ability of future generations to meet their own needs.
(b) It is the potential for long-term maintenance of wellbeing which has environmental and social dimensions.
(c) It is a set of processes, customs, policies, laws, and institutions affecting the way the business is managed.
(d) It is the growth of an investment in a business where the investment can be sold after a few years at a profit.
Select one:
a. It is when all the products, processes and manufacturing activities meet customer needs, while at the same time treating the
environment in such a manner that it does not decrease the ability of future generations to meet their own needs.
b. It is a set of processes, customs, policies, laws, and institutions affecting the way the business is managed.
c. It is the potential for long-term maintenance of wellbeing which has environmental and social dimensions.
d. It is the growth of an investment in a business where the investment can be sold after a few years at a profit.
Question 3
Incorrect
Mark 0.00 out of 2.00
The yield to maturity (YTM) percentage used in determining the pre-tax cost of debt financing is also _________.
(a) The effective required return (cost) for equity instruments.
(b) The effective after-tax cost of debt financing.
(c) The internal rate of return (IRR) that will discount all cash flows to zero.
(d) The IRR that is based on the current market value of the of debt instruments and all future after-tax cash flows.
Select one:
a. The effective required return (cost) for equity instruments.
b. The IRR that is based on the current market value of the of debt instruments and all future after-tax cash flows.
c. The internal rate of return (IRR) that will discount all cash flows to zero.
d. The effective after-tax cost of debt financing.
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,Question 4
Correct
Mark 2.00 out of 2.00
Select the combination of the following considerations that are all TRUE when an organisation needs to raise long-term capital.
(1) Debt holders run the highest risk of their capital not being repaid.
(2) Debt tends to have a finite life while equity tends to be part of the organisation for life.
(3) Equity financing is relatively more expensive than debt financing.
(4) Holders of ordinary shares do not control the organisation as they have no voting rights.
(5) Interest payable on debt is deductible as a business expense for normal tax purposes.
(a) Statements (1), (3) and (5)
(b) Statements (1), (2) and (5)
(c) Statements (2), (3) and (5)
(d) Statements (2), (3) and (4)
Select one:
a. Statements (2), (3) and (5)
b. Statements (2), (3) and (4)
c. Statements (1), (3) and (5)
d. Statements (1), (2) and (5)
, Question 5
Correct
Mark 2.00 out of 2.00
Select the combination of the following statements regarding growth rate as applied in ratio analysis that are all TRUE.
(1) Further comparison and investigation should be done when there is an increase or decrease in the growth rate for the result to be
sensible.
(2) Growth rate refers to the percentage that a line item in the financial information of an organisation has increased or decreased from one
period to another.
(3) Growth rates could not be used in conjunction with other ratios that were analysed to help clarify the results.
(4) The growth rate can provide an indication of the success of an organisation’s operations over several periods or years.
(5) Growth rates can only be calculated on figures in the statement of profit or loss and other comprehensive income.
(a) Statements (1), (2) and (3)
(b) Statement (1), (3) and (4)
(c) Statements (1), (2) and (4)
(d) Statement (1), (2), (3) and (5)
Select one:
a. Statement (1), (2), (3) and (5)
b. Statement (1), (3) and (4)
c. Statements (1), (2) and (4)
d.
Statements (1), (2) and (3)
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for FAC ECS MAC DSC TAX QMI FIN INV BNU STA
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