Exam (elaborations)
MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7 April
Course
· Principles of Strategy Risk & Financial Management Techniques (MAC2602)
· Institution
· University Of South Africa (Unisa)
· Book
· Principles of Managerial Finance
MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7 April 2025;
100% TRUSTED Complete, trusted solutions and explanations.. Ensure your
success with
QUESTION 1 (8 Marks; 10 minutes) Please answer the following four questions by
listing the question numbers below one another, from 1.1 to 1.4, with your
corresponding answer next to each number, for example: 1.1. (a) 1.2. (b) The
questions/scenarios are as follows: 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). (2) 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. (2) 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
sometimes scarce resources. (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.
(2) 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. MAC2602 ASSESSMENT TWO (2) S1-2025 4
1.1. (c) Statements (1), (2), and (4).
Explanation: Threats in SWOT analysis are external factors that can
negatively affect an organization. Statements (1), (2), and (4) discuss external
factors like market competition, industrial strikes, and price wars, which are
threats. Statement (3) and (5) are internal factors related to inefficiencies or
lack of investment, which are weaknesses, not threats.
1.2. (d) Debt financing does not influence the risk profile of an organisation.
Explanation: Debt financing does influence the risk profile of an organization
because the company has to repay the debt, which increases financial risk.
The other statements correctly describe aspects of debt financing.
1.3. (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.
Explanation: While turning a strategic plan into action plans is important, the
main goal of a strategic plan is to outline the long-term vision and goals of
the organization. Developing action plans is a step that comes after
formulating the strategy.
1.4. (b) The Stock Market Index.
Explanation: The Stock Market Index is not an inventory management
method. It is a measure of the performance of a stock market. The other
options are methods used for managing inventories.
QUESTION 2 (33 marks; 39 minutes) The MTN Group Limited (“MTN”) is a South
African-based multinational corporation and mobile telecommunications provider.
The company is listed on the Johannesburg Stock Exchange and has a 31st
December financial year-end. MTN is present in more than 20 countries in Asia and
the rest of the African continent. Towards the end of December 2024, the company
MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7 April
Course
· Principles of Strategy Risk & Financial Management Techniques (MAC2602)
· Institution
· University Of South Africa (Unisa)
· Book
· Principles of Managerial Finance
MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7 April 2025;
100% TRUSTED Complete, trusted solutions and explanations.. Ensure your
success with
QUESTION 1 (8 Marks; 10 minutes) Please answer the following four questions by
listing the question numbers below one another, from 1.1 to 1.4, with your
corresponding answer next to each number, for example: 1.1. (a) 1.2. (b) The
questions/scenarios are as follows: 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). (2) 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. (2) 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
sometimes scarce resources. (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.
(2) 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. MAC2602 ASSESSMENT TWO (2) S1-2025 4
1.1. (c) Statements (1), (2), and (4).
Explanation: Threats in SWOT analysis are external factors that can
negatively affect an organization. Statements (1), (2), and (4) discuss external
factors like market competition, industrial strikes, and price wars, which are
threats. Statement (3) and (5) are internal factors related to inefficiencies or
lack of investment, which are weaknesses, not threats.
1.2. (d) Debt financing does not influence the risk profile of an organisation.
Explanation: Debt financing does influence the risk profile of an organization
because the company has to repay the debt, which increases financial risk.
The other statements correctly describe aspects of debt financing.
1.3. (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.
Explanation: While turning a strategic plan into action plans is important, the
main goal of a strategic plan is to outline the long-term vision and goals of
the organization. Developing action plans is a step that comes after
formulating the strategy.
1.4. (b) The Stock Market Index.
Explanation: The Stock Market Index is not an inventory management
method. It is a measure of the performance of a stock market. The other
options are methods used for managing inventories.
QUESTION 2 (33 marks; 39 minutes) The MTN Group Limited (“MTN”) is a South
African-based multinational corporation and mobile telecommunications provider.
The company is listed on the Johannesburg Stock Exchange and has a 31st
December financial year-end. MTN is present in more than 20 countries in Asia and
the rest of the African continent. Towards the end of December 2024, the company
