,MAC4865 ASSIGNMENT 02 ANSWERS - DUE DATE 28 MAY 2026
QUESTION 1 (26 Marks)
1.1 If the exchange rate moves from ZAR 1 = US Dollar 0.059 to ZAR 1 = US Dollar 0.062,
then the South African Rand has …
A. Appreciated and South Africans will find US goods more expensive.
B. Appreciated and South Africans will find US goods cheaper.
C. Depreciated and South Africans will find US goods cheaper.
D. Depreciated and South Africans will find US goods more expensive.
Correct answer: B
1.2 Value for money is an important objective for not-for-profit organisations. Which ONE
of the following actions is consistent with increasing value for money?
A. Using a cheaper source of goods and thereby decreasing the quality of not-for-profit
organisation services.
B. Decreasing waste in the provision of a service by the not-for-profit organisation.
C. Searching for ways to diversify the finances of the not-for-profit organisation.
D. Focusing on meeting the financial objectives of the not-for-profit organisation.
Correct answer: B
1.3 What does a dividend cover of less than 1 indicate?
A. The company is insolvent.
, B. The company has made a loss for the year.
C. The dividend for the year has been partly satisfied by accumulated profits.
D. The company has no more distributable reserves.
Correct answer: C
1.4 Which tax consideration is NOT likely to be relevant in assessing whether a foreign
project is acceptable?
A. The tax allowable depreciation rules in the foreign country.
B. The tax allowable depreciation rules in the home country.
C. The rate of corporate income tax in the foreign country.
D. The rate of corporate income tax in the home country.
Correct answer: B
1.5 Which THREE characteristics of March (Pty) Ltd are likely to be viewed positively by
the bank?
I. It is all equity financed
II. There is a single supplier of raw materials
III. It has a good reputation for paying payables on time
IV. Its order book is clear after the next two months
V. It has a wide range of well-established products
A. I, II and III
B. I, III and V
QUESTION 1 (26 Marks)
1.1 If the exchange rate moves from ZAR 1 = US Dollar 0.059 to ZAR 1 = US Dollar 0.062,
then the South African Rand has …
A. Appreciated and South Africans will find US goods more expensive.
B. Appreciated and South Africans will find US goods cheaper.
C. Depreciated and South Africans will find US goods cheaper.
D. Depreciated and South Africans will find US goods more expensive.
Correct answer: B
1.2 Value for money is an important objective for not-for-profit organisations. Which ONE
of the following actions is consistent with increasing value for money?
A. Using a cheaper source of goods and thereby decreasing the quality of not-for-profit
organisation services.
B. Decreasing waste in the provision of a service by the not-for-profit organisation.
C. Searching for ways to diversify the finances of the not-for-profit organisation.
D. Focusing on meeting the financial objectives of the not-for-profit organisation.
Correct answer: B
1.3 What does a dividend cover of less than 1 indicate?
A. The company is insolvent.
, B. The company has made a loss for the year.
C. The dividend for the year has been partly satisfied by accumulated profits.
D. The company has no more distributable reserves.
Correct answer: C
1.4 Which tax consideration is NOT likely to be relevant in assessing whether a foreign
project is acceptable?
A. The tax allowable depreciation rules in the foreign country.
B. The tax allowable depreciation rules in the home country.
C. The rate of corporate income tax in the foreign country.
D. The rate of corporate income tax in the home country.
Correct answer: B
1.5 Which THREE characteristics of March (Pty) Ltd are likely to be viewed positively by
the bank?
I. It is all equity financed
II. There is a single supplier of raw materials
III. It has a good reputation for paying payables on time
IV. Its order book is clear after the next two months
V. It has a wide range of well-established products
A. I, II and III
B. I, III and V
