MAC2602/001/3/2021
COMPULSORY ASSIGNMENT 01/2021 FOR BOTH SEMESTERS
MULTIPLE CHOICE QUESTIONS (50 marks) Unique number – 799319
Set your calculator on four decimal places for this
assignment.
1. Which of the following are considered to be elements of a strategy?
(a) The formulation of a strategy should display a broad conceptual knowledge of the
operating environment of the organisation.
(b) The activities that are chosen should fit one another in order to lead to success.
(c) The choice of activities should provide a competitive advantage.
(d) The strategies are based on the organisation’s core values.
(e) It necessitates that a decision also has to be made about which activities not to
choose. Trade-offs are made when choosing specific actions as opposed to other
actions
1) Statements (a), (d) and (c)
2) Statements (a), (c), (d) and (e)
3) Statements (b), (c), (d) and (e)
4) Statements (a), (b), (c), (d) and (e) (2)
2. Which one of the following statements is TRUE?
1) The government is a primary, internal stakeholder of a company and has a strong
influence on how the organisation is managed.
2) Pressure groups, such as workers unions, are secondary, external stakeholders that
act on behalf of people whose rights are adversely affected by a company.
3) Banks and lenders form part of the secondary, connected stakeholders of a company
and they are interested in the cash flows of that company.
4) Shareholders/owners are primary, internal stakeholders and their interests will mainly
be issues concerned with the growth and continued existence of the company. (2)
1
,MAC2602/001/3/2021
3. The development of an organisation’s strategy is influenced by different internal and external
environmental factors. Which one of the following combinations are factors that influence
the internal environment?
1) Corporate culture, technological environment, controls at organisation level andpolitical
environment.
2) Social environment, economic environment, organisational leadership, HR policies and
corporate culture.
3) HR policies, controls at organisation level, industrial relations and corporate culture.
4) Organisational leadership, political environment, competitive environment and social
environment.
4. From the lists below, which combination of factors would serve as determinants of the
strength of a rival as per Porter’s five forces model?
1) Economies of scale, brand loyalty, cost advantage, ease of distribution, strong capital
base.
2) High retrenchment costs, potential upswing in economic conditions, substantial
investment in non-current assets.
3) Capacity of the industry, penalty clauses in supplier and rental contracts.
4) Absence of switching costs, demand conditions, amount of fixed costs, competitive
structure of the industry, global customers, extent of exit barriers, growth rate of
industry. (2)
5. Which handy tool reports performance measures across four dimensions, namely financial,
customer, internal business processes and learning and growth?
1) Value-based management (VBM)
2) SWOT analysis
3) SRI index
4) Balanced scorecard (2)
2
, MAC2602/001/3/2021
6. The functions of strategic financial management include amongst others:
a) The allocation of scarce capital resources among competing opportunities.
b) Identification of possible strategies capable of maximising the net present value of
the organisation.
c) The implementation and monitoring of the chosen strategy to achieve stated
objectives.
d) Compliance with laws, rules, codes and standards.
Which of the above statements refer to the functions of strategic financial management?
1) (a) and (b)
2) (b) and (c)
3) (a), (b) and (c)
4) (a), (b) and (d) (2)
____________________________________________________________________________
7. When business people refer to the principle “cradle to the grave”, what business concept are
they referring to?
1) Porter’s five forces model
2) Life cycle stages of an organisation
3) SWOT analysis
4) Agency theory (2)
______________________________________________________________________________________
8. R30 000 is invested for six years at 1% interest per quarter. Calculate the value of this
investment after six years, assuming that simple interest apply.
1) R35 400
2) R31 800
3) R51 600
4) R37 200 (2)
CALCULATION:
I =Prt
=30 000 x 1% x 6
=1 800
A= 30 000 + 1800 = R31 800
___________________________________________________________________________________________
3
, MAC2602/001/3/2021
9. The present value of a future amount was calculated to be R207,54 at a discount rate of 5%
and the present value of the same future amount was calculated to be R183,30 at a discount
rate of 6%. Use extrapolation and calculate the discount rate that will achieve a present value
of R165,25.
[Round your final answer to two decimal places]
1) 5,57%
2) 6,57%
3) 6,75%
4) 5,50% (2)
CALCULATION:
y−z
𝑏+[ 𝑥 (𝑏 − 𝑎) ]
x−y
183.30−165.25
= 6% + [ 207.54−183.30 𝑥 (6 − 5) ]
= 6% + 0.745%
= 6.75%
10. A study friend of yours wants to know which interest rate factor to use in his calculation of
the present value of an annuity received from years 1 to 9 at an interest rate of 8%
1) Table B - 6,247
2) Table D - 12,488 3) Table A - 0,500
4) Table C - 1,990 (2)
CALCULATION:
1
1−
(1 + i)n
[ ]
i
1
1−
(1 + 8%)9
=[ ]
8%
= 6,247
4
COMPULSORY ASSIGNMENT 01/2021 FOR BOTH SEMESTERS
MULTIPLE CHOICE QUESTIONS (50 marks) Unique number – 799319
Set your calculator on four decimal places for this
assignment.
1. Which of the following are considered to be elements of a strategy?
(a) The formulation of a strategy should display a broad conceptual knowledge of the
operating environment of the organisation.
(b) The activities that are chosen should fit one another in order to lead to success.
(c) The choice of activities should provide a competitive advantage.
(d) The strategies are based on the organisation’s core values.
(e) It necessitates that a decision also has to be made about which activities not to
choose. Trade-offs are made when choosing specific actions as opposed to other
actions
1) Statements (a), (d) and (c)
2) Statements (a), (c), (d) and (e)
3) Statements (b), (c), (d) and (e)
4) Statements (a), (b), (c), (d) and (e) (2)
2. Which one of the following statements is TRUE?
1) The government is a primary, internal stakeholder of a company and has a strong
influence on how the organisation is managed.
2) Pressure groups, such as workers unions, are secondary, external stakeholders that
act on behalf of people whose rights are adversely affected by a company.
3) Banks and lenders form part of the secondary, connected stakeholders of a company
and they are interested in the cash flows of that company.
4) Shareholders/owners are primary, internal stakeholders and their interests will mainly
be issues concerned with the growth and continued existence of the company. (2)
1
,MAC2602/001/3/2021
3. The development of an organisation’s strategy is influenced by different internal and external
environmental factors. Which one of the following combinations are factors that influence
the internal environment?
1) Corporate culture, technological environment, controls at organisation level andpolitical
environment.
2) Social environment, economic environment, organisational leadership, HR policies and
corporate culture.
3) HR policies, controls at organisation level, industrial relations and corporate culture.
4) Organisational leadership, political environment, competitive environment and social
environment.
4. From the lists below, which combination of factors would serve as determinants of the
strength of a rival as per Porter’s five forces model?
1) Economies of scale, brand loyalty, cost advantage, ease of distribution, strong capital
base.
2) High retrenchment costs, potential upswing in economic conditions, substantial
investment in non-current assets.
3) Capacity of the industry, penalty clauses in supplier and rental contracts.
4) Absence of switching costs, demand conditions, amount of fixed costs, competitive
structure of the industry, global customers, extent of exit barriers, growth rate of
industry. (2)
5. Which handy tool reports performance measures across four dimensions, namely financial,
customer, internal business processes and learning and growth?
1) Value-based management (VBM)
2) SWOT analysis
3) SRI index
4) Balanced scorecard (2)
2
, MAC2602/001/3/2021
6. The functions of strategic financial management include amongst others:
a) The allocation of scarce capital resources among competing opportunities.
b) Identification of possible strategies capable of maximising the net present value of
the organisation.
c) The implementation and monitoring of the chosen strategy to achieve stated
objectives.
d) Compliance with laws, rules, codes and standards.
Which of the above statements refer to the functions of strategic financial management?
1) (a) and (b)
2) (b) and (c)
3) (a), (b) and (c)
4) (a), (b) and (d) (2)
____________________________________________________________________________
7. When business people refer to the principle “cradle to the grave”, what business concept are
they referring to?
1) Porter’s five forces model
2) Life cycle stages of an organisation
3) SWOT analysis
4) Agency theory (2)
______________________________________________________________________________________
8. R30 000 is invested for six years at 1% interest per quarter. Calculate the value of this
investment after six years, assuming that simple interest apply.
1) R35 400
2) R31 800
3) R51 600
4) R37 200 (2)
CALCULATION:
I =Prt
=30 000 x 1% x 6
=1 800
A= 30 000 + 1800 = R31 800
___________________________________________________________________________________________
3
, MAC2602/001/3/2021
9. The present value of a future amount was calculated to be R207,54 at a discount rate of 5%
and the present value of the same future amount was calculated to be R183,30 at a discount
rate of 6%. Use extrapolation and calculate the discount rate that will achieve a present value
of R165,25.
[Round your final answer to two decimal places]
1) 5,57%
2) 6,57%
3) 6,75%
4) 5,50% (2)
CALCULATION:
y−z
𝑏+[ 𝑥 (𝑏 − 𝑎) ]
x−y
183.30−165.25
= 6% + [ 207.54−183.30 𝑥 (6 − 5) ]
= 6% + 0.745%
= 6.75%
10. A study friend of yours wants to know which interest rate factor to use in his calculation of
the present value of an annuity received from years 1 to 9 at an interest rate of 8%
1) Table B - 6,247
2) Table D - 12,488 3) Table A - 0,500
4) Table C - 1,990 (2)
CALCULATION:
1
1−
(1 + i)n
[ ]
i
1
1−
(1 + 8%)9
=[ ]
8%
= 6,247
4
