MNG4804 ASSIGNMENT 3 0717513144
Disclaimer
The assignment pack is centred on MNG4804 assignment 3 questions. It is a product of
internal and external research that includes the study guide, prescribed text book and other
authentic sources. It is therefore, advised for students not to share it as it is for the benefit
of paying students. For clarity, students are free to call on the provided number.
, MNG4804 ASSIGNMENT 3 0717513144
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
Disclaimer
The assignment pack is centred on MNG4804 assignment 3 questions. It is a product of
internal and external research that includes the study guide, prescribed text book and other
authentic sources. It is therefore, advised for students not to share it as it is for the benefit
of paying students. For clarity, students are free to call on the provided number.
, MNG4804 ASSIGNMENT 3 0717513144
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
