Subject: BUSSINESS, MANAGEMENT & FINANCE

Search 500 + past questions and counting.

BMF – Nov 2020 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Explanation of loan covenants, reasons and benefits for share repurchase, and features of a finance lease arrangement.

Question

(a) For many loan agreements, the borrower is required to provide undertakings or guarantees of some kind.
Distinguish between covenants and guarantees. (5 Marks)

(b) State THREE reasons why a company will repurchase its shares and THREE benefits that will accrue to the company for doing so. (6 Marks)

(c) Companies can acquire assets with finance lease instead of buying assets with equity or debt capital.
State SIX main features of a finance lease arrangement. (9 Marks)

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate finance, Finance lease, Guarantees, Loan Covenants, Share repurchase
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q5 – Investment Decisions

Evaluate the investment project using IRR and advise management on the project feasibility.

Question

Uhuru Nigeria Limited wants to buy a new item of equipment which will be used to improve service delivery to its customers. Using the internal rate of return (IRR) method of investment appraisal, you are required to evaluate the project and advise the management of the company. Estimated cash flows from the project are as provided below:

Year	Cash Flow (N)
0	(400,000)
1	140,000
2	150,000
3	170,000
4	190,000

The expected minimum required rate of return of the company is fixed at 25%.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Budgeting, Cash Flow Analysis, Internal Rate of Return (IRR), Investment Appraisal, Rate of Return
Level: Level 1

Topic: Investment Decisions
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q4 – The Role of Professional Accountants in Business and

Explanation of ethical dilemmas, powers of professional bodies, and methods for resolving ethical dilemmas.

Question

(a) Distinguish between ethical dilemma and conflict of interest. (4 Marks)
(b) Globally, professional bodies are backed by law, consequently, a measure of authority is conferred upon them which they regularly exercise whenever the situation or circumstance demands.
State THREE powers of a professional body. (6 Marks)
(c) State FIVE possible ways of resolving ethical dilemma in a business environment. (10 Marks)

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Ethics, Conflict of Interest, Conflict Resolution, Ethical dilemma, Professional Body Powers
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q2 – Management, Individual, and Organisational Behaviour

Explanation of reinforcement theory and self-efficacy, and their applications in the business environment.

Question

(a) Describe reinforcement theory and state the main assumption that guides reinforcement theory.
(b) Explain the ways by which reinforcement theory can be employed in the business environment.
(c) What is self-efficacy? State and explain the ways by which levels of self-efficacy impact human functions.

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Behavioral Theory, Motivation, Positive Reinforcement, Reinforcement Theory
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q1b – The Business Environment

State five functions each for the Administration and Finance departments of an organization.

Question

Innoson Transport Company plans to create two new departments, administration and finance. In view of this, two managers will be hired to oversee these functional units.
State FIVE functions of each of the two departments.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cultural Differences, Hofstede's Dimensions, International business, National Culture
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q1a – The Business Environment

Identify and explain Hofstede's five dimensions of national culture.

Question

Geert Hofstede gave an international perspective on suggesting that culture differs among nations.

Identify and explain the FIVE dimensions of national culture as suggested by Hofstede.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cultural Analysis, Cultural Dimensions, Hofstede, International business, National Culture
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF- Nov 2020 – L1 – SA – Q20 – The Business Environment

Identify the correct statement regarding the laws of demand and supply.

Question

Which of the following statements in relation to the laws of demand and supply is correct?
A. An increase in price leads to an increase in demand
B. A decrease in price leads to a decrease in demand
C. If demand is highly elastic, a reduction in the sales price will result in an increase in total sales revenue
D. The quantity of a good that suppliers are willing to sell falls when the price of the good rises
E. The quantity of a good that suppliers are willing to sell rises when the price of the good falls

Answer

Find Related Questions by Tags, levels, etc.

Tags: Demand, Economic Laws, Supply
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q19 – The Business Environment

Identify a feature of monopolistic competition.

Question

Which of the following is a feature of monopolistic competition?
A. Small number of suppliers
B. Monitors the actions of the other firms
C. Faces a kinked demand curve
D. Knowledge is widespread, but not perfect
E. Decisions of one firm influence the decisions of other firms

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic theory, Market Features, Monopolistic Competition
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q18 – Business and Organizational Structures and Choices

Identify a key characteristic of a global company.

Question

One of the characteristics of a global company is that:
A. Management makes strategic decisions for each foreign market
B. Products are adapted to the requirements of the local market
C. Marketing is adapted in each country to suit the local culture
D. The value chain in each country of operation is optimised
E. The senior managers are likely to come from different countries

Answer

Find Related Questions by Tags, levels, etc.

Tags: Global Company, International Strategy, Management
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q17 – Communications in Business

Identify the decade when early communication models were developed.

Question

Early communication models were developed in the:
A. 1910s
B. 1920s
C. 1930s
D. 1940s
E. 1950s

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Communications, Communication Models, History
Level: Level 1

Topic: Communications in Business
Series: NOV 2020

BMF – May 2015 – L1 – SA – Q4 – Basics of Business Finance and Financial Markets

This question focuses on identifying the correct item that is included in a cash flow calculation.

Question

Which of the following is a cashflow calculation item?

A. Depreciation of fixed assets
B. Loss on disposal of fixed assets
C. Profit on disposal of investments
D. Surplus on revaluation of fixed assets
E. Proceeds from disposal of fixed assets

Answer

Find Related Questions by Tags, levels, etc.

Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2015

BMF – May 2015 – L1 – SA – Q3 – The Business Environment

This question focuses on the purpose of analyzing an organization’s strategic position and its implications for organizational strategy.

Question

The purpose of analyzing an organisation’s strategic position is:

A. To understand the operational and corporate requirements of an organisation
B. To understand the strategic position of the organisation in terms of its strategic capability
C. To understand and allocate available resources
D. To understand the strategic position of the organisation in terms of its external environment, capabilities, and expectations
E. To evaluate the resources required to translate strategy into action

Answer

Find Related Questions by Tags, levels, etc.

Level: Level 1

Topic: The Business Environment
Series: MAY 2015

BMF – May 2015 – L1 – SA – Q2 – Basics of Business Finance and Financial Markets

This question tests knowledge on the process of channeling funds between economic units within a financial system.

Question

The channelling of funds from one economic unit to the other is known as:

A. Financial market
B. Financial intervention
C. Financial restructuring
D. Financial intermediation
E. Money market intervention

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic Units, Finance, Financial Intermediation, Financial Markets
Level: Level 1

Series: MAY 2015

BMF – May 2015 – L1 – SA – Q1 – Basic Management Functions

This question tests the understanding of the management function that ensures compliance with established policies and practices.

Question

The management function which ensures that things happen in accordance with established policies and practices is called:

A. Organising
B. Coordinating
C. Controlling
D. Planning
E. Motivating

Answer

Find Related Questions by Tags, levels, etc.

Tags: Controlling, Management Functions, Policies, Practices
Level: Level 1

Topic: Basic Management Functions
Series: MAY 2015

BF – Nov 2015 – L1 – SB – Q6 – Communications in Business

Discussing the concept of communication and its significance in business organizations.

Question

Communication is the life-blood of all business organizations.

Required:
a. Explain the concept of communication. (5 Marks)
b. Explain briefly FIVE reasons why communication is important to business organizations. (15 Marks)

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Importan Organizational Behaviour, Communication
Level: Level 1

Topic: Communications in Business
Series: NOV 2015

BF – Nov 2015 – L1 – SB – Q5 – Management, Individual, and Organizational Behaviour

Identifying causes of conflict in organizations and strategies for managing conflict.

Question

Work organizations are often structured around teams. However, teamwork brings about interactions among people which may sometimes lead to conflict.

Required:
a. State and explain FIVE causes of conflict in organizations. (12 Marks)
b. Explain briefly FOUR strategies for managing conflict in work organizations. (8 Marks)

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Conflict, Management Strategies, Organizations, Teamwork
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2015

BF – Nov 2015 – L1 – SB – Q3 – The Business Environment

Discussing the impact of the business environment and key marketing concepts.

Question

The business environment can have a fundamental impact on the degree to which a firm is able to develop and maintain successful transactions with its customers and consequently on its profitability and sustainability of its operations.

Explain briefly the following:
i. Product life cycle (5 Marks)
ii. PEST Analysis (4 Marks)
iii. SWOT Analysis (4 Marks)

b. State and explain the 7P’s of marketing. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: 7P's, Business Environment, Marketing
Level: Level 1

Topic: The Business Environment
Series: NOV 2015

BF – Nov 2015 – L1 – SB – Q2 – Basics of Business Finance and Financial Markets

Analyzing capital structure to compute estimated share values and recommend optimal structure.

Question

A firm has recently collected the following data in respect of its capital structure, expected earnings per share, and required rate of return.

Debt Ratio %	Expected Earnings Per Share (N)	Required Rate of Return (%)
0	3.10	14
10	3.80	16
20	4.60	17
30	5.25	19
40	5.70	20
50	5.00	22
60	4.50	24

You are required to:
a. Compute the estimated share values. (10 Marks)
b. Determine the optimal capital structure based on the maximization of expected earnings per share and the maximization of share values. (5 Marks)
c. Which capital structure criterion would you recommend and why? (5 Marks)

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital structure, Earnings Per Share, Share Value
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2015

BF – Nov 2015 – L1 – SB – Q1 – Nature of Business, Types, and Objectives

Discussing reasons for planning and types of planning based on time horizons.

Question

The world in which businesses operate has become increasingly uncertain. By planning and identifying future risks and opportunities, businesses can act immediately to help create the most favourable future outcome and achieve goals and objectives.

a. State FIVE reasons for planning. (5 Marks)
b. Explain briefly THREE types of planning, considering time horizon. (15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Strategy, Planning, Risk Management
Level: Level 1

Topic: Nature of Business, Types, and Objectives
Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q20 – The Role of Professional Accountants in Business and Society

Identifying the incorrect statement about the role of a professional accountant.

Question

Which of the following is NOT correct about a professional accountant?
A. Providing crucial contributions to streamline business plans
B. Serving as part of the management team of any organisation
C. Specialising in finance and accounting matters only
D. Involved in a wide range of activities beyond finance reporting and accounting matters
E. Procuring capital for current and future success of the company

Answer

Find Related Questions by Tags, levels, etc.

Tags: Professional Accountant, Responsibilities, Roles
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2015

Subject: BUSSINESS, MANAGEMENT & FINANCE

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

BMF – Nov 2020 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Explanation of loan covenants, reasons and benefits for share repurchase, and features of a finance lease arrangement.

BMF – Nov 2020 – L1 – SB – Q5 – Investment Decisions

Evaluate the investment project using IRR and advise management on the project feasibility.

BMF – Nov 2020 – L1 – SB – Q4 – The Role of Professional Accountants in Business and

Explanation of ethical dilemmas, powers of professional bodies, and methods for resolving ethical dilemmas.

BMF – Nov 2020 – L1 – SB – Q2 – Management, Individual, and Organisational Behaviour

Explanation of reinforcement theory and self-efficacy, and their applications in the business environment.

BMF – Nov 2020 – L1 – SB – Q1b – The Business Environment

State five functions each for the Administration and Finance departments of an organization.

BMF – Nov 2020 – L1 – SB – Q1a – The Business Environment

Identify and explain Hofstede's five dimensions of national culture.

BMF- Nov 2020 – L1 – SA – Q20 – The Business Environment

Identify the correct statement regarding the laws of demand and supply.

BMF – Nov 2020 – L1 – SA – Q19 – The Business Environment

Identify a feature of monopolistic competition.

BMF – Nov 2020 – L1 – SA – Q18 – Business and Organizational Structures and Choices

Identify a key characteristic of a global company.

BMF – Nov 2020 – L1 – SA – Q17 – Communications in Business

Identify the decade when early communication models were developed.

BMF – May 2015 – L1 – SA – Q4 – Basics of Business Finance and Financial Markets

This question focuses on identifying the correct item that is included in a cash flow calculation.

BMF – May 2015 – L1 – SA – Q3 – The Business Environment

This question focuses on the purpose of analyzing an organization’s strategic position and its implications for organizational strategy.

BMF – May 2015 – L1 – SA – Q2 – Basics of Business Finance and Financial Markets

This question tests knowledge on the process of channeling funds between economic units within a financial system.

BMF – May 2015 – L1 – SA – Q1 – Basic Management Functions

This question tests the understanding of the management function that ensures compliance with established policies and practices.

BF – Nov 2015 – L1 – SB – Q6 – Communications in Business

Discussing the concept of communication and its significance in business organizations.

BF – Nov 2015 – L1 – SB – Q5 – Management, Individual, and Organizational Behaviour

Identifying causes of conflict in organizations and strategies for managing conflict.

BF – Nov 2015 – L1 – SB – Q3 – The Business Environment

Discussing the impact of the business environment and key marketing concepts.

BF – Nov 2015 – L1 – SB – Q2 – Basics of Business Finance and Financial Markets

Analyzing capital structure to compute estimated share values and recommend optimal structure.

BF – Nov 2015 – L1 – SB – Q1 – Nature of Business, Types, and Objectives

Discussing reasons for planning and types of planning based on time horizons.

BF – Nov 2015 – L1 – SA – Q20 – The Role of Professional Accountants in Business and Society

Identifying the incorrect statement about the role of a professional accountant.

Our offerings

Contact Info

Customer

Get In Touch