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MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 DUE 7 April 2025

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MAC2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 DUE 7 April 2025

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MAC2602 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7

April 2025




DETAILED QUESTIONS WITH
VERIFIED ANSWERRS




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,MAC2602 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 7 April 2025; 100% correct solutions
and explanations.
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
QUESTION 2 (33 marks; 39 minutes)

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