Principles of Strategy Risk & Financial Management Techniques (MAC2603)
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Question 1
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Which ONE of the following statements regarding the specific classified stakeholders and the
type of interest they have, is TRUE?
a) The government is the primary, internal stakeholder of a company and has a strong
influence on how the organisation is managed.
b) Pressure groups, such as workers unions, are secondary, external stakeholders that act
on behalf of people whose rights are adversely affected by a company.
c) Banks and lenders form part of the secondary, connected stakeholders of a company and
they are interested in the cash flows of that company.
d) Shareholders/owners are primary, internal stakeholders and their interests will mainly be
issues concerned with the growth and continued existence of the company.
Select one:
a.
Pressure groups, such as workers unions, are secondary, external stakeholders that act on
behalf of people whose rights are adversely affected by a company.
b.
The government is the primary, internal stakeholder of a company and has a strong
influence on how the organisation is managed.
c.
Banks and lenders form part of the secondary, connected stakeholders of a company and
they are interested in the cash flows of that company.
d.
Shareholders/owners are primary, internal stakeholders and their interests will mainly be
issues concerned with the growth and continued existence of the company.
Feedback
Indicating: Pressure groups, such as workers unions, are secondary, external stakeholders
that act on behalf of people whose rights are adversely affected by a company
Question 2
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Apply your knowledge about factors in the external environment that can have an influence
on the profits of organisations and should therefore be considered in the development of
their strategy. Then select the statement that specifically relates to the economic
environment.
(a) Exposure of unethical behaviour of organisations in the media.
(b) The timing of local elections.
(c) The rapid escalation of inflation.
(d) Advances in the use of alternative energy resources.
Select one:
a.
The rapid escalation of inflation.
b.
Advances in the use of alternative energy resources.
c.
Exposure of unethical behaviour of organisations in the media.
d.
The timing of local elections
Feedback
Indicating: The rapid escalation of inflation.
Economic factors in the external environment that should be assessed due to the possible
influence on the organisation’s strategy includes inflation; interest rates; tax rates and tax laws;
unemployment; disposable income, trends in GNP and business cycles.
Statement (a) is an example that relates to the social environment.
Statement (b) is an example that relates to the political environment.
Statement (d) is an example that relates to the technological environment.
Question 3
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A factor in the internal environment of the organisation that has an influence on the
development of their strategy involves the driver of perceptions, attitudes and behaviour of
employees that influence business results. Which ONE of the following factors is represented
in this statement?
(a) Human resource policies
(b) Corporate culture
(c) Organisation leadership
(d) Industrial relations
Select one:
a.
Organisation leadership
b.
Industrial relations
c.
Human resource policies
d.
Corporate culture
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Indicating: Corporate culture.
Corporate culture entails employees’ shared beliefs, values, and symbols.
Question 4
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Select which combination of the actions stated below are all correct as examples of
sustainability for businesses.
(1) Recycling and eliminating waste.
(2) Saving costs by cutting spending on safety equipment.
(3) Converting harmful gases into clean energy.
(4) Approving salary increases only for management and not for other employees.
, (a) Statements (1), (2) and (3)
(b) Statements (1), (2) and (4)
(c) Statements (1), (3) and (4)
(d) Statements (1), and (3)
Select one:
a.
Statements (1), and (3)
b.
Statements (1), (2) and (4)
c.
Statements (1), (2) and (3)
d.
Statements (1), (3) and (4)
Feedback
Indicating: Statements (1), and (3).
Statements (1) and (3) are correct actions relating to the sustainability for businesses. Take
note that sustainability for businesses refer to: that all the products, processes and
manufacturing activities of the business 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.
Statement (2) and (4) are NOT examples of sustainability for businesses as it has nothing to do
with meeting customer needs or the correct treatment of the environment.
Question 5
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Which ONE of the following statements is FALSE regarding debt financing?
a) Interest relating to debt financing can be deducted from taxable income.
b) Debt requires repayment of capital and interest.
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