BMZ ACADEMY
BMZ ACADEMY
@061 262 1185/068 053 8213/0717 513 144
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
, BMZ ACADEMY
Table of Contents
1. Critically analyse the important factors to consider when a company in Africa that is involved in
international business makes investment decisions. Make specific reference to benefits, costs and
risks under the current socio-economic conditions (30 marks).............................................................. 3
Capital budgeting ............................................................................................................................. 3
Political risks ..................................................................................................................................... 3
Economic risks.................................................................................................................................. 4
Project and parent cash flows ........................................................................................................ 4
Reducing transaction costs............................................................................................................. 5
Managing the tax burden ................................................................................................................ 5
Minimizing cash balances ............................................................................................................... 6
2. As the Chief Financial Officer of a multinational corporation, explain how you will espouse the
differences in accounting standards and control systems that subsist in every country where your
business operates. (30 marks) ................................................................................................................ 7
Requirements.................................................................................................................................... 7
Introduction.................................................................................................................................... 7
Body................................................................................................................................................ 7
Conclusion. .................................................................................................................................. 10
3. Taking into account the relevant tax principles, critically discuss ways in which an Africa-originated
MNC would deploy cost reduction while fulfilling every offshore tax obligation. (20 marks) ............. 10
Requirements.................................................................................................................................. 10
Introduction. .................................................................................................................................... 10
Body ............................................................................................................................................. 11
Conclusion. .................................................................................................................................. 12
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
BMZ ACADEMY
@061 262 1185/068 053 8213/0717 513 144
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
, BMZ ACADEMY
Table of Contents
1. Critically analyse the important factors to consider when a company in Africa that is involved in
international business makes investment decisions. Make specific reference to benefits, costs and
risks under the current socio-economic conditions (30 marks).............................................................. 3
Capital budgeting ............................................................................................................................. 3
Political risks ..................................................................................................................................... 3
Economic risks.................................................................................................................................. 4
Project and parent cash flows ........................................................................................................ 4
Reducing transaction costs............................................................................................................. 5
Managing the tax burden ................................................................................................................ 5
Minimizing cash balances ............................................................................................................... 6
2. As the Chief Financial Officer of a multinational corporation, explain how you will espouse the
differences in accounting standards and control systems that subsist in every country where your
business operates. (30 marks) ................................................................................................................ 7
Requirements.................................................................................................................................... 7
Introduction.................................................................................................................................... 7
Body................................................................................................................................................ 7
Conclusion. .................................................................................................................................. 10
3. Taking into account the relevant tax principles, critically discuss ways in which an Africa-originated
MNC would deploy cost reduction while fulfilling every offshore tax obligation. (20 marks) ............. 10
Requirements.................................................................................................................................. 10
Introduction. .................................................................................................................................... 10
Body ............................................................................................................................................. 11
Conclusion. .................................................................................................................................. 12
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
