MAC2602 Assignment
2 (COMPLETE
ANSWERS &
CALCULATIONS)
Semester 1 2025 -
DUE 7 April 2025
, MAC2602 Assignment 2 (COMPLETE
ANSWERS & CALCULATIONS) Semester 1
2025 - DUE 7 April 2025
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) MAC2602 Assignment 2 2025 Increasing market
competition has resulted in excess supply capacity.
(2)MAC 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)MAC2602 Assignment 2025 Statements (1), (2),
and (3). (b) Statements (1), (2), (4), and (5). (c)
Assignment 2 2025 MAC2602 Statements (1), (2),
and (4). (d) Statements (2), (3), (4), and (5). (2)
Explanation: Threats in SWOT analysis refer to external factors.
Increasing competition (1), industrial strikes (2), and price wars (4)
are external. Raw material wastage (3) and insufficient R&D (5) are
internal weaknesses.
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)
2 (COMPLETE
ANSWERS &
CALCULATIONS)
Semester 1 2025 -
DUE 7 April 2025
, MAC2602 Assignment 2 (COMPLETE
ANSWERS & CALCULATIONS) Semester 1
2025 - DUE 7 April 2025
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) MAC2602 Assignment 2 2025 Increasing market
competition has resulted in excess supply capacity.
(2)MAC 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)MAC2602 Assignment 2025 Statements (1), (2),
and (3). (b) Statements (1), (2), (4), and (5). (c)
Assignment 2 2025 MAC2602 Statements (1), (2),
and (4). (d) Statements (2), (3), (4), and (5). (2)
Explanation: Threats in SWOT analysis refer to external factors.
Increasing competition (1), industrial strikes (2), and price wars (4)
are external. Raw material wastage (3) and insufficient R&D (5) are
internal weaknesses.
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)
