Question 1
(a) Describe the role of accounting in a business, profit-oriented organization, and the governing bodies that assist in meeting the objectives of accounting.
(b) Describe the application of leverage ratios and explain why creditors may be more concerned with these ratios than others.
Question 2
(a) Critically evaluate all the methods of financial analyses available to an investment consultant in determining whether the company is worth investing in.
(b) List any 10 of the Generally Accepted Accounting Principles and explain their respective usefulness (in your own words) in evaluating the performance of the company.
Question 3
You are an investment consultant and your client seeks your advice in determining whether to invest in a company or not. Obtain a company’s financial report for three consecutive years. Critically evaluate its performance using various performance measurement tools available and write a report to advise your client accordingly.
Question 4
(a) Explain why financial statements of a company may not be sufficient for a potential investor to make a judgment of the company’s financial health.
(b) Explain the importance of budgeting in a company’s business plan.
MARKETING MANAGEMENT (2500 – 3500 WORDS)
Question: Why do firms need to introduce new products even though the risk level is high? With the aid of the new products development process, discuss how you, as the Marketing Manager, would manage the entire process when launching a new product.
STRATEGIC MANAGEMENT (2500 – 3500 WORDS)
“Describe the present strategy of your business unit and analyse the industry in which your business unit competes using Porter’s framework. Then make and justify recommendations for how appropriate the strategy may be or how it might be improved.”
Recommended Readings
1. Pitts RA & Lei D, Strategic Management: Building And Sustaining Competitive Advantage, (2000) Thomson Learning
2. Pearson GJ, Strategy In Action: Strategic Thinking, Understanding And Practice, (1999) FT Prentice Hall
3. Porter ME, Competitive Strategy, (1980) Free Press
4. Porter ME, The Competitive Advantage Of Nations, (1990) Free Press
5. Mintzberg H & Quinn JB, The Strategy Process: Concepts, Contexts And Cases, (1996) Prentice Hall
