Exam (elaborations)
Exam (elaborations) Principles of Strategy Risk & Financial Management Techniques (Mac2602)
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- University Of South Africa (Unisa)
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UNISA 2024 MAC2602-24-S2 Welcome to MAC2602 Assessment 4QUIZ
Started on Friday, 27 September 2024, 11:14 AM
State Finished
Completed on Friday, 27 September 2024, 11:43 AM
Time taken 29 mins 13 secs
Marks 43.00/50.00
Grade 86.00 out of 100.00
Question 1
Correct
Mark 2.00 out of 2.00
Risk mapping is a technique for assessing the severity or impact of a risk and the likelihood or frequency of its occurrence.
For what kind of risk assessment would it probably be most appropriate to take out an insurance policy from an insurance
company?
(a) Severity low; frequency low
(b) Severity high; frequency low
(c) Severity high; frequency high
(d) Severity low; frequency high
Select one:
a. Severity low; frequency high
b. Severity high; frequency low
c. Severity high; frequency high
d. Severity low; frequency low
,Question 2
Correct
Mark 2.00 out of 2.00
Risk appetite is the nature and strength of risk an organisation is prepared to bear. Select the correct classification that
indicates the risk appetite of an organisation that is an aggressive risk taker to get high returns.
(a) Risk relevant
(b) Risk capacity
(c) Risk seeking
(d) Risk culture
Select one:
a. Risk relevant
b. Risk culture
c. Risk seeking
d. Risk capacity
,Question 3
Correct
Mark 2.00 out of 2.00
Select the combination of the following statements that are all relating to factoring as method of short-term financing.
(1) This method allows the organisation to withdraw money up to the original credit limit once a certain percentage has been
repaid and/or extra cash can be paid into the account and withdrawn again later.
(2) This method means that the organisation sells a bill of exchange to the bank. The organisation is then committed to
using the full amount for the agreed period until the predetermined maturity date.
(3) This method means that a continuous agreement is drawn up whereby the supplier of the funds will pay the agreed
percentage of sales up front to the organisation. It is treated the same as an advance and paid back at the end of the month
whereafter the process is repeated for the next month.
(4) This method is normally used as bridging finance to cover a temporary cash shortfall and regarded as a short-term loan
with interest only paid on the actual money borrowed at any point in time.
(5) This method of debtor’s financing results in improving the debtors’ collection period as the debt is paid as it arises. It is a
very expensive form of financing that should be used only as a last resort.
(a) Statements (1), (2) and (3)
(b) Statements (2), (3) and (5)
(c) Statements (1), (2), (4) and (5)
(d) Statements (3) and (5)
Select one:
a. Statements (1), (2) and (3)
b. Statements (3) and (5)
c. Statements (2), (3) and (5)
d. Statements (1), (2), (4) and (5)
, Question 4
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. Statement (1), (2), (3) and (5)
b. Statements (1), (3), (4) and (5)
c. Statement (2), (3), (4) and (5)
d. Statements (1), (2), (3), (4) and (5)
Question 5
Incorrect
Mark 0.00 out of 2.00
Which ONE of the following ratios would be most appropriate to use to compare the performance of two companies that
operate in the same line of business.
(a) Debt to equity ratio.
(b) Acid test ratio.
(c) Price earnings ratio.
(d) Return on total assets (ROA).
Select one:
a. Debt to equity ratio.
b. Price earnings ratio.
c. Acid test ratio.
d. Return on total assets (ROA).
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