MAC2602 Assignment 2 2025 - Due 7
April 2025
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Assessment Two (2) – S1-2025
MAC2602
ciples of Strategy, Risk, and Financial Management Techniqu
100 Marks
Duration 2 Hours
Due Date: 07 April 2025 @ 23:00 (South African Time)
1.1. In SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, threats
relate to external factors that are outside the organisation. Which of the following
statements are all examples of threats?
(1) Increasing market competition has resulted in excess supply capacity.
(2) Industrial strikes by employees.
(3) Excessive raw material wastage in the production process.
(4) Price wars amongst serial market competitors and rivalries.
(5) Insufficient investment in research and development facilities.
(a) Statements (1), (2), and (3).
(b) Statements (1), (2), (4), and (5).
(c) Statements (1), (2), and (4).
(d) Statements (2), (3), (4), and (5).
1.2. Which of the following statements is incorrect regarding debt financing?
(a) Debt financing requires the repayment of debt and the related interest.
(b)The cost of obtaining some forms of debt is lower than the cost of issuing ordinary
shares.
(c) Interest expense relating to debt financing can be deducted for taxation purposes.
(d) Debt financing does not influence the risk profile of an organisation.
1.3. Which of the following statements is false regarding goals and outcomes of a strategic
planning process?
(a) Goal hierarchy deals with how an organisation allocates its available and
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(b) A principal goal when drafting a strategic plan is to develop it in such a way
that it can be turned easily into action plans.
(c) Goal congruency has to do with the alignment of different departments’/ units’
goals and objectives with each other and the overall goals and objectives of an
organisation.
(d) Goal sequencing refers to how an organisation would arrange its goals in such a
manner that achieving one goal leads to working on the next goal.
1.4. Inventory management refers to the methods the organisation uses to control its
inventories. Which of the following methods/ models is not used by organisations to
manage inventories?
(a) The Economic Order Quantity.
(b) The Stock Market Index.
(c) Just-In-Time inventory system.
(d) Re-ordering and Safety stock system.
3
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April 2025
written by
Thandolowethu
www.stuvia.com
Downloaded by: Ambwesa1987 | Want to earn
R13,625 per
Distribution of this document is illegal year?
, Stuvia.com - The study-notes
marketplace
Assessment Two (2) – S1-2025
MAC2602
ciples of Strategy, Risk, and Financial Management Techniqu
100 Marks
Duration 2 Hours
Due Date: 07 April 2025 @ 23:00 (South African Time)
1.1. In SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, threats
relate to external factors that are outside the organisation. Which of the following
statements are all examples of threats?
(1) Increasing market competition has resulted in excess supply capacity.
(2) Industrial strikes by employees.
(3) Excessive raw material wastage in the production process.
(4) Price wars amongst serial market competitors and rivalries.
(5) Insufficient investment in research and development facilities.
(a) Statements (1), (2), and (3).
(b) Statements (1), (2), (4), and (5).
(c) Statements (1), (2), and (4).
(d) Statements (2), (3), (4), and (5).
1.2. Which of the following statements is incorrect regarding debt financing?
(a) Debt financing requires the repayment of debt and the related interest.
(b)The cost of obtaining some forms of debt is lower than the cost of issuing ordinary
shares.
(c) Interest expense relating to debt financing can be deducted for taxation purposes.
(d) Debt financing does not influence the risk profile of an organisation.
1.3. Which of the following statements is false regarding goals and outcomes of a strategic
planning process?
(a) Goal hierarchy deals with how an organisation allocates its available and
3
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sometimes scarce resources.
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(b) A principal goal when drafting a strategic plan is to develop it in such a way
that it can be turned easily into action plans.
(c) Goal congruency has to do with the alignment of different departments’/ units’
goals and objectives with each other and the overall goals and objectives of an
organisation.
(d) Goal sequencing refers to how an organisation would arrange its goals in such a
manner that achieving one goal leads to working on the next goal.
1.4. Inventory management refers to the methods the organisation uses to control its
inventories. Which of the following methods/ models is not used by organisations to
manage inventories?
(a) The Economic Order Quantity.
(b) The Stock Market Index.
(c) Just-In-Time inventory system.
(d) Re-ordering and Safety stock system.
3
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