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 sometimes
scarce resources.
3
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 sometimes
scarce resources.
3
