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| Section | Objectives |
|---|---|
| Topic 1: Digital Strategy and Sustainability | - Sustainability and ESG
|
| Topic 2: Strategy Development | - Strategic analysis and diagnosis
|
| Topic 3: Financial Strategy | - Investment and financing decisions
|
| Topic 4: Strategy Implementation | - Performance management systems
|
| Topic 5: Risk Management and Governance | - Enterprise risk management
|
1. - Obligation to pay interest on borrowings
- Pressure on cashflow as must pay interest back
- Affects credit rating if unable to pay interest
A) Advantages of debt over equity financing
B) Advantages of share for share exchange
C) Disadvantages of share for share exchange
D) Disadvantages of debt financing
2. - Costs to Daistruk paying in another currency would decrease as R$ worth more
A) If R$ strengthens....
B) Disadv. of Currency Futures
C) Disadvantages of earnout
D) Advantages of earnout
3. - Borrow in one currency and deposit money in another currency
- Loan taken out today in R$ and cash converted to E$ today and transferred to Euro bank account and kept there until required
- Interest paid when funds are needed
A) Money Market hedge
B) Benefits of netting
C) Translation risk
D) Types of decisions
4. - Comply with laws
- Meet contractual obligations
- Safeguard informational assets of an entity
A) Sources of reputational risk
B) Aim of confidentiality (elements of strategies)
C) Impact of downtime for Daistruk IT system
D) Threats to compliance with fundamental ethical principles
5. 1) Where to compete- which markets, which products
2) how to compete- what should be the basis for our competitive advantage eg cost leader or differentiator
3) which investment vehicle to use- organic growth, acquisition, JV, merger, strategic alliance
A) Signalling effect
B) Strategic Options
C) Scrip dividend
D) Sensitive Information
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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