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Which of the following represents the gain or loss (to the nearest thousand dollars) that will accrue to Company W assuming that the price of the commodity rises to $800 in three months' time?
Company W produces mobile phone components and has recently tendered for a substantial contract. The results of the tendering process will not become available until three months from now. If the company is successful it will require 2,000 units of a commodity which is currently traded in an open commodity...
Which of the following measures should he put in place to help reduce this risk?
James owns a small company which sometimes suffers from credit risk. Which of the following measures should he put in place to help reduce this risk?A . Introduce credit checks for new customers.B . Reduce the company bank loans.C . Pay suppliers' invoices quicker.D . Look for a loan with...
What should P do?
P Ltd, a manufacturing company, is considering a new capital investment project to set up a new production line. The initial appraisal shows a healthy net present value of $6,465 million at a discount rate of 10% as shown in the table below: However, management is unsure about the demand...
Which THREE fundamental ethical principles has Kate breached?
Kate is a management accountant. Her immediate superior plans to apply for a promotion and his strongest competitor is the sales manager. Kate's superior has ordered her to set unattainable sales targets in a sales budget in order to reduce the sales manager's promotion prospects. He told her not to...
Which of the following risks should be given highest priority?
Which of the following risks should be given highest priority?A . Risks which have a high impact and which may arise occasionallyB . Risks which have a low impact but which arise frequentlyC . Risks which have a high impact and have a low likelihood of arisingD . Risks which...
Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?
W plc is a large international supermarket chain. It has many thousands of suppliers and many thousands of others competing for "shelf space" in its supermarkets. Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?A . W...
What should P do?
P Ltd, a manufacturing company, is considering a new capital investment project to set up a new production line. The initial appraisal shows a healthy net present value of $6,465 million at a discount rate of 10% as shown in the table below: However, management is unsure about the demand...
Which of the following statements is consistent with these figures?
DFG's home currency is the D$. DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following: • Inflation has been running at 5% in DFG's home country and 8% in country L • Interest rates are 7%...
Which of the following statements are correct?
An oil company has entered into a joint venture with a competing oil company to develop a new oil field. The joint venture arrangement is intended to mitigate the risks associated with developing the oil field. The following disclosure appears in the oil company's risk report: "Many of our large...
Which of the following is the most likely explanation for the third-party owner's refusal to assist JNH's Head of Security?
JNH is a major corporation that stores its customer database in the Cloud JNH has suffered a data breach that has led to customer credit card details being made available for sale on the internet JNH's Head of Security wishes to analyse network traffic at the cloud-based server in order...
