Tag (SQ): Business impact

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BMIS – L1 – QC3 – Interest Rate Impact

Explain how a 2% interest rate rise affects a computer games manufacturer.

Explain how a manufacturer of computer games might be affected by a 2% rise in interest rates by the central bank.

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FM – L2 – Q8 – Introduction to financial management

Describe four key factors indicative of a successful organization.

(A). One of the key expectations of the Finance Manager is to ensure the success of the organisation. Describe FOUR (4) key factors that are indicative of a successful organisation.

(B). The quarterly report of the treasury unit of Saruwa Limited contains a paragraph on government policy targets and progress towards achievement of the targets. The technical director has expressed disagreement about the time spent in discussing these policies as wasteful because the policies have no relevance to the business activities of the confectionery company.

Required:

As Head of Finance, you have been tasked to discuss SIX (6) points on government revenue mobilisation policies to agree or disagree with the Technical Director’s position.

(C). (i) Distinguish between fiscal policy and monetary policy.

(ii) Explain TWO adverse effects a contractionary fiscal policy could have on businesses.

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