Fall Semester 2025 UNISA Assignment: MAC2602 / COS2626 Principles
of Strategy, Risk & Financial Management Techniques – Complete Solved
Assignment with Step-by-Step Answers and Exam-Focused Study Guide
(Updated 2025 Edition)
Question 1:
Which of the following is a primary objective of strategic management?
A) Reducing costs
B) Increasing employee satisfaction
C) Achieving a competitive advantage
D) Enhancing customer relationships
Correct Option: C
Rationale: The primary objective of strategic management is to achieve a competitive
advantage, enabling the organization to outperform its rivals.
Question 2:
What type of risk is associated with the uncertainty of future cash flows?
A) Market risk
B) Credit risk
C) Operational risk
D) Liquidity risk
Correct Option: C
Rationale: Operational risk arises from uncertainties related to internal processes,
systems, or people, impacting cash flows.
Question 3:
In financial management, what does the term "diversification" refer to?
A) Investing in a single asset
B) Spreading investments across various assets
C) Increasing capital in one project
D) Focusing on high-risk investments
Correct Option: B
Rationale: Diversification is the practice of spreading investments across various
assets to reduce overall risk.
Question 4:
,Which analysis is used to assess the internal and external environments of an
organization?
A) SWOT Analysis
B) PEST Analysis
C) Porter’s Five Forces Analysis
D) Financial Ratio Analysis
Correct Option: C
Rationale: Porter’s Five Forces Analysis evaluates the competitive forces affecting an
industry, combining both internal and external factors.
Question 5:
What is the primary purpose of risk management in financial contexts?
A) To eliminate all risks
B) To identify, assess, and mitigate risks
C) To increase investment opportunities
D) To ensure maximum profit
Correct Option: B
Rationale: The primary purpose of risk management is to identify, assess, and mitigate
risks to ensure financial stability and security.
Question 6:
Which of the following best describes "strategic planning"?
A) A short-term operational plan
B) A financial forecasting tool
C) A long-term vision for an organization
D) A method for employee performance evaluation
Correct Option: C
Rationale: Strategic planning involves defining an organization's long-term goals and
determining the actions required to achieve them, focusing on the overall vision of the
organization.
Question 7:
What is the main focus of financial risk management?
A) Avoiding all market investments
B) Enhancing liquidity
, C) Identifying and mitigating financial risks
D) Increasing profit margins
Correct Option: C
Rationale: Financial risk management aims to identify, analyze, and mitigate risks that
could negatively impact an organization's financial stability and performance.
Question 8:
Which financial statement provides information about a company's profitability?
A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Equity Statement
Correct Option: B
Rationale: The Income Statement summarizes a company's revenues and expenses
over a specific period, providing insights into its profitability.
Question 9:
In SWOT analysis, what does the "T" stand for?
A) Threats
B) Trends
C) Technologies
D) Timeframes
Correct Option: A
Rationale: In SWOT analysis, "T" stands for Threats, which refer to external factors that
poses challenges to the organization.
Question 10:
Which theory explains the relationship between risk and expected return?
A) Efficient Market Hypothesis
B) Capital Asset Pricing Model (CAPM)
C) Modern Portfolio Theory
D) Arbitrage Pricing Theory
Correct Option: C
of Strategy, Risk & Financial Management Techniques – Complete Solved
Assignment with Step-by-Step Answers and Exam-Focused Study Guide
(Updated 2025 Edition)
Question 1:
Which of the following is a primary objective of strategic management?
A) Reducing costs
B) Increasing employee satisfaction
C) Achieving a competitive advantage
D) Enhancing customer relationships
Correct Option: C
Rationale: The primary objective of strategic management is to achieve a competitive
advantage, enabling the organization to outperform its rivals.
Question 2:
What type of risk is associated with the uncertainty of future cash flows?
A) Market risk
B) Credit risk
C) Operational risk
D) Liquidity risk
Correct Option: C
Rationale: Operational risk arises from uncertainties related to internal processes,
systems, or people, impacting cash flows.
Question 3:
In financial management, what does the term "diversification" refer to?
A) Investing in a single asset
B) Spreading investments across various assets
C) Increasing capital in one project
D) Focusing on high-risk investments
Correct Option: B
Rationale: Diversification is the practice of spreading investments across various
assets to reduce overall risk.
Question 4:
,Which analysis is used to assess the internal and external environments of an
organization?
A) SWOT Analysis
B) PEST Analysis
C) Porter’s Five Forces Analysis
D) Financial Ratio Analysis
Correct Option: C
Rationale: Porter’s Five Forces Analysis evaluates the competitive forces affecting an
industry, combining both internal and external factors.
Question 5:
What is the primary purpose of risk management in financial contexts?
A) To eliminate all risks
B) To identify, assess, and mitigate risks
C) To increase investment opportunities
D) To ensure maximum profit
Correct Option: B
Rationale: The primary purpose of risk management is to identify, assess, and mitigate
risks to ensure financial stability and security.
Question 6:
Which of the following best describes "strategic planning"?
A) A short-term operational plan
B) A financial forecasting tool
C) A long-term vision for an organization
D) A method for employee performance evaluation
Correct Option: C
Rationale: Strategic planning involves defining an organization's long-term goals and
determining the actions required to achieve them, focusing on the overall vision of the
organization.
Question 7:
What is the main focus of financial risk management?
A) Avoiding all market investments
B) Enhancing liquidity
, C) Identifying and mitigating financial risks
D) Increasing profit margins
Correct Option: C
Rationale: Financial risk management aims to identify, analyze, and mitigate risks that
could negatively impact an organization's financial stability and performance.
Question 8:
Which financial statement provides information about a company's profitability?
A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Equity Statement
Correct Option: B
Rationale: The Income Statement summarizes a company's revenues and expenses
over a specific period, providing insights into its profitability.
Question 9:
In SWOT analysis, what does the "T" stand for?
A) Threats
B) Trends
C) Technologies
D) Timeframes
Correct Option: A
Rationale: In SWOT analysis, "T" stands for Threats, which refer to external factors that
poses challenges to the organization.
Question 10:
Which theory explains the relationship between risk and expected return?
A) Efficient Market Hypothesis
B) Capital Asset Pricing Model (CAPM)
C) Modern Portfolio Theory
D) Arbitrage Pricing Theory
Correct Option: C
