MAC4867
CONTENTS
Dear Student
• Please make sure that your answer is properly structured. With headings, paragraphs etc.
• We suggest that you complete your assignment in your own handwriting as this will prepare
you for the exam.
• Please acknowledge your information sources. You can use Harvard referencing.
• Wikipedia is not an academic source.
• Your answer should be in business language, no SMS/WhatsApp language.
• You do not have to submit the declaration. (Plagiarism sheet) By submitting any MAC4867
assignment, you automatically declare that you adhere to all the rules and policies of Unisa,
which includes the rules on plagiarism. Please note the following:
• If you are found to be in violation of the plagiarism declaration, you will receive 0% for the
assignment.
• If you copied all or a portion of your assignment from someone else, both you and the
person you copied from will receive 0% for the assignment.
• If any similar-looking/worded assignments are found it will be considered a violation of the
declaration and you will receive 0% for the assignment.
Please note:
Do not rewrite the information in the study guide. Even if you acknowledge your source you still need to
put the information in your own words. No marks will be awarded if work is copied straight from the study
text or any other source as this is plagiarism and not your own work. On the Postgraduate level you are
expected to use more sources than only the prescribed material. In order to obtain any marks all
questions must be answered!
Plagiarism declaration
Plagiarism: Plagiarism is the act of taking the words, ideas and thoughts of others and passing them
off as your own. It is a form of theft, which involves a number of dishonest academic activities.
The Disciplinary code that can be found in the Study @ Unisa brochure is given to all students at
registration. Students are advised to study the Code, especially Chapter 3: 1.22 and 1.23. Furthermore,
please read the University’s Copyright Infringement and Plagiarism Policy.
Your assignment must be completely your own work. You will receive 0% for your whole assignment
if it has deemed that plagiarism was committed in any part of the assignment and you may be subject to
disciplinary proceedings by the University.
PLAGIARISM DECLARATION
I declare that this assignment, submitted by myself, is my own work and that I have referenced all the
sources that I have used.
By submitting any MAC4867 assignment, I declare that:
• I have read the Unisa Students’ Disciplinary Code;
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can
be taken against me if I am found guilty of plagiarism;
• My assignment is my own work;
• I have not allowed any other student to copy my work;
• I know that if I am found to be in violation of this declaration I will receive 0% for
2
, MAC4867
the assignment.
Please note: You do not have to submit the declaration. By submitting any MAC4867v assignment,
you automatically declare that you adhere to all the above with regard to the specific assignment.
Please note: Each student must write and submit his or her own individual assignment. It is
unacceptable for students to submit identical or a similar looking assignment. That is copying (a form
of plagiarism) and none of these assignments will be marked. Furthermore, you may be penalised or
subjected to disciplinary proceedings by the University.
ASSIGNMENT 02: (COMPULSORY ASSIGNMENT FOR YEAR MARK)
Due date: 30 June 2024
Unique Number: 845270
Total Marks: 75 marks
THIS ASSIGNMENT CONSISTS OF THREE QUESTIONS AND MUST BE SUBMITTED ON OR BEFORE
THE DUE DATE AS IT FORMS PART OF YOUR YEAR MARK. THIS ASSIGNMENT COVERS PART A
OF THE SYLLABUS.
NO EXTENSION OF TIME WILL BE GIVEN FOR THE SUBMISSION OF ASSIGNMENTS, SINCE
SOLUTIONS WILL BE MADE AVAILABLE AUTOMATICALLY TO ALL STUDENTS AFTER THE DUE
DATES. NO EXEPTIONS WILL BE MADE REGARDING THE LATE SUBMISSION OF ASSIGNMENTS.
ASSIGNMENTS RECEIVED AFTER THE DUE DATE WILL NOT BE MARKED.
For these longer type questions use the theory as your framework, relate to the scenario and use
your own ideas. As the management accountant at the company how would you answer.
Remember if you copy your answer straight off the internet this is known as plagiarism and no marks
will be awarded. Even if you reference your work it must be in your own words.
3
, MAC4867
QUESTION 1
MULTIPLE CHOICE (10 marks) :
The following scenario relates to Question 1 to 4:
Jaha Auto Limited is based in East London and manufactures large, expensive, fast sports cars. The
company currently manufactures vehicles for the South African and European markets and is investigating
other markets. Indicate which mitigating action is most advisable to address
each of the risks noted below.
1) Environmental concerns could mean that customers will want only small and economical cars.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
2) A customer or a third party could be killed or injured because of the sheer power of the cars making them
difficult to drive safely.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
3) A customer or a third party could be killed or injured because of a manufacturing fault leading to an
accident.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
4) Environmental legislation in Australia could mean that all cars sold in that country must meet emissions
and fuel economy standards that would be impossible to achieve with a car of this type.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
5) SMEC Ltd is a local manufacturer of kitchen appliances. SMEC has a large long-term contract to sell its
products to a company in Zambia and SMEC will be transacting in Zambian kwacha. Inflation in Zambia
is very high as it has more than doubled in the past (from 6.58% in 2017 to 14.45% in 2020). SMEC Ltd
is concerned about the effect this will have on exchange rates.
What type of risk is SMEC Ltd concerned about?
A. Environmental risk
B. Financial risk
C. Business risk
D. Reputation risk (1)
6) Which of the following statements is true?
A. Risk is only about things going wrong
B. Risk is something new we need to understand and apply to our business strategy
C. Only profitable enterprises need concern themselves with 'risk'
4
, MAC4867
D. Risk is not always a negative, but could also be about not recognising an opportunity (1)
7) Hedging can be used ….
A. To reduce or eliminate exposure to risk
B. To reduce costs
C. To protect profit already made from having taken a risky position
D. To make profit by accepting risk (1)
8) Nazo Mining is a multinational mining company with operations across Asia and Africa. They are
investigating the potential to commence a copper mine in Country A. The popular government in this
country has been in power for 20 years as there have been no elections since then.
What THREE steps should Nazo Mining take to manage the long-term political risks, particularly the risk
of expropriation, in this venture?
I. Seek sponsorship from local businesses in the country with a view to long-term ownership
transfer.
II. Seek financing from local banks in Country A
III. Commission detailed studies of the future predicted stability and economics of the Country A
IV. Use profits from the mine to invest in local education and healthcare
V. Seek consultation with local industrial and government representatives
VI. Set up a joint venture with the government for investment and profit sharing
Choose the correct option
A. I, II and VI
B. II, IV and V
C. I, III and IV
D. II, III and V (2)
9) HH Living Ltd is a leading innovative pharmaceutical r e s e a r c h and manufacturing company with
interests across the globe. Yesterday a leading newspaper in a developing country exposed a serious
and potentially deadly health risk to employees exposed to harmful chemicals.
HH Living Ltd has not yet reacted to the report. Management held an emergency meeting to decide
on the best course of action. Within the meeting the newly appointed Finance manager remarked on
the culture of carelessness and neglect by employees.
Which one element of the COSO framework for internal controls is the Finance Manager discussing?
A. Control Environment
B. Risk assessment
C. Control activities
D. Monitoring (1)
TOTAL: 10 MARKS
5
CONTENTS
Dear Student
• Please make sure that your answer is properly structured. With headings, paragraphs etc.
• We suggest that you complete your assignment in your own handwriting as this will prepare
you for the exam.
• Please acknowledge your information sources. You can use Harvard referencing.
• Wikipedia is not an academic source.
• Your answer should be in business language, no SMS/WhatsApp language.
• You do not have to submit the declaration. (Plagiarism sheet) By submitting any MAC4867
assignment, you automatically declare that you adhere to all the rules and policies of Unisa,
which includes the rules on plagiarism. Please note the following:
• If you are found to be in violation of the plagiarism declaration, you will receive 0% for the
assignment.
• If you copied all or a portion of your assignment from someone else, both you and the
person you copied from will receive 0% for the assignment.
• If any similar-looking/worded assignments are found it will be considered a violation of the
declaration and you will receive 0% for the assignment.
Please note:
Do not rewrite the information in the study guide. Even if you acknowledge your source you still need to
put the information in your own words. No marks will be awarded if work is copied straight from the study
text or any other source as this is plagiarism and not your own work. On the Postgraduate level you are
expected to use more sources than only the prescribed material. In order to obtain any marks all
questions must be answered!
Plagiarism declaration
Plagiarism: Plagiarism is the act of taking the words, ideas and thoughts of others and passing them
off as your own. It is a form of theft, which involves a number of dishonest academic activities.
The Disciplinary code that can be found in the Study @ Unisa brochure is given to all students at
registration. Students are advised to study the Code, especially Chapter 3: 1.22 and 1.23. Furthermore,
please read the University’s Copyright Infringement and Plagiarism Policy.
Your assignment must be completely your own work. You will receive 0% for your whole assignment
if it has deemed that plagiarism was committed in any part of the assignment and you may be subject to
disciplinary proceedings by the University.
PLAGIARISM DECLARATION
I declare that this assignment, submitted by myself, is my own work and that I have referenced all the
sources that I have used.
By submitting any MAC4867 assignment, I declare that:
• I have read the Unisa Students’ Disciplinary Code;
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can
be taken against me if I am found guilty of plagiarism;
• My assignment is my own work;
• I have not allowed any other student to copy my work;
• I know that if I am found to be in violation of this declaration I will receive 0% for
2
, MAC4867
the assignment.
Please note: You do not have to submit the declaration. By submitting any MAC4867v assignment,
you automatically declare that you adhere to all the above with regard to the specific assignment.
Please note: Each student must write and submit his or her own individual assignment. It is
unacceptable for students to submit identical or a similar looking assignment. That is copying (a form
of plagiarism) and none of these assignments will be marked. Furthermore, you may be penalised or
subjected to disciplinary proceedings by the University.
ASSIGNMENT 02: (COMPULSORY ASSIGNMENT FOR YEAR MARK)
Due date: 30 June 2024
Unique Number: 845270
Total Marks: 75 marks
THIS ASSIGNMENT CONSISTS OF THREE QUESTIONS AND MUST BE SUBMITTED ON OR BEFORE
THE DUE DATE AS IT FORMS PART OF YOUR YEAR MARK. THIS ASSIGNMENT COVERS PART A
OF THE SYLLABUS.
NO EXTENSION OF TIME WILL BE GIVEN FOR THE SUBMISSION OF ASSIGNMENTS, SINCE
SOLUTIONS WILL BE MADE AVAILABLE AUTOMATICALLY TO ALL STUDENTS AFTER THE DUE
DATES. NO EXEPTIONS WILL BE MADE REGARDING THE LATE SUBMISSION OF ASSIGNMENTS.
ASSIGNMENTS RECEIVED AFTER THE DUE DATE WILL NOT BE MARKED.
For these longer type questions use the theory as your framework, relate to the scenario and use
your own ideas. As the management accountant at the company how would you answer.
Remember if you copy your answer straight off the internet this is known as plagiarism and no marks
will be awarded. Even if you reference your work it must be in your own words.
3
, MAC4867
QUESTION 1
MULTIPLE CHOICE (10 marks) :
The following scenario relates to Question 1 to 4:
Jaha Auto Limited is based in East London and manufactures large, expensive, fast sports cars. The
company currently manufactures vehicles for the South African and European markets and is investigating
other markets. Indicate which mitigating action is most advisable to address
each of the risks noted below.
1) Environmental concerns could mean that customers will want only small and economical cars.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
2) A customer or a third party could be killed or injured because of the sheer power of the cars making them
difficult to drive safely.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
3) A customer or a third party could be killed or injured because of a manufacturing fault leading to an
accident.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
4) Environmental legislation in Australia could mean that all cars sold in that country must meet emissions
and fuel economy standards that would be impossible to achieve with a car of this type.
A) Avoid
B) Accept
C) Reduce
D) Transfer (1)
5) SMEC Ltd is a local manufacturer of kitchen appliances. SMEC has a large long-term contract to sell its
products to a company in Zambia and SMEC will be transacting in Zambian kwacha. Inflation in Zambia
is very high as it has more than doubled in the past (from 6.58% in 2017 to 14.45% in 2020). SMEC Ltd
is concerned about the effect this will have on exchange rates.
What type of risk is SMEC Ltd concerned about?
A. Environmental risk
B. Financial risk
C. Business risk
D. Reputation risk (1)
6) Which of the following statements is true?
A. Risk is only about things going wrong
B. Risk is something new we need to understand and apply to our business strategy
C. Only profitable enterprises need concern themselves with 'risk'
4
, MAC4867
D. Risk is not always a negative, but could also be about not recognising an opportunity (1)
7) Hedging can be used ….
A. To reduce or eliminate exposure to risk
B. To reduce costs
C. To protect profit already made from having taken a risky position
D. To make profit by accepting risk (1)
8) Nazo Mining is a multinational mining company with operations across Asia and Africa. They are
investigating the potential to commence a copper mine in Country A. The popular government in this
country has been in power for 20 years as there have been no elections since then.
What THREE steps should Nazo Mining take to manage the long-term political risks, particularly the risk
of expropriation, in this venture?
I. Seek sponsorship from local businesses in the country with a view to long-term ownership
transfer.
II. Seek financing from local banks in Country A
III. Commission detailed studies of the future predicted stability and economics of the Country A
IV. Use profits from the mine to invest in local education and healthcare
V. Seek consultation with local industrial and government representatives
VI. Set up a joint venture with the government for investment and profit sharing
Choose the correct option
A. I, II and VI
B. II, IV and V
C. I, III and IV
D. II, III and V (2)
9) HH Living Ltd is a leading innovative pharmaceutical r e s e a r c h and manufacturing company with
interests across the globe. Yesterday a leading newspaper in a developing country exposed a serious
and potentially deadly health risk to employees exposed to harmful chemicals.
HH Living Ltd has not yet reacted to the report. Management held an emergency meeting to decide
on the best course of action. Within the meeting the newly appointed Finance manager remarked on
the culture of carelessness and neglect by employees.
Which one element of the COSO framework for internal controls is the Finance Manager discussing?
A. Control Environment
B. Risk assessment
C. Control activities
D. Monitoring (1)
TOTAL: 10 MARKS
5
