Principles of Strategy Risk & Financial Management Techniques (MAC2602)
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10/25/24, 10:10 AM Assessment 6: Attempt review
MAC2602-24-S2 Welcome to MAC2602 Assessment 6
QUIZ
Started on Friday, 25 October 2024,
9:35 AM
State Finished
Completed on Friday, 25 October 2024,
10:08 AM
Time taken 33 mins 4 secs
Marks 43.00/50.00
Grade 86.00 out of 100.00
Question 1
Correct
Mark 2.00 out of 2.00
Measuring annual profitability based only on
accounting and financial indicators have
certain drawbacks. Which of the following
statements are examples of these drawbacks?
(1) Encourages short-term returns at the
expense of the development of the business.
(2) It is a long-term measure.
(3) Profit earned is not an indicator of cash
flows generated.
(4) Risk is ignored.
(5) It can be manipulated using creative
accounting.
(a) Statements (1), (2), (3), (4) and (5)
(b) Statement (1), (2), (3) and (5)
(c) Statements (1), (3), (4) and (5)
(d) Statement (2), (3), (4) and (5)
Select one:
a. Statements (1), (2), (3), (4) and (5)
Apply your knowledge about the main types of
risks and select all the statements that relates
specifically to financial risk?
(1) The risk that decision makers within the
organisation use invalid or poor-quality
information for decision making or the risk of
loss of information.
(2) The organisation has reasonably high debt
that is not linked to a fixed rate and the
uncertainty of interest rate fluctuations is a
risk.
(3) The risk of investors losing interest in the
organisation and holding back new funds for
urgent maintenance or new developments.
(4) The risk of gains or losses that
organisations, having transactions with
foreign countries, may face due to fluctuations
in the value of their currency in relation to
another currency.
(5) Organisations make decisions to invest in
expansion or a capital project and the risk is
that the decision turns out to be wrong or
untimely.
a) Statements (1), (2) and (3)
b) Statements (2), (3) and (4)
c) Statements (2) and (4)
Which ONE of the following alternatives is
NOT one of the four risk objectives as defined
by the Committee of Sponsoring
Organisations of the Treadway Commission
(COSO)’s Enterprise Risk Framework?
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