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Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months' time?
The long-term prospects for interest rates in the UK and the USA are 2% and 6% per annum respectively. The GBP/USD spot rate is currently GBP/USD1.71. Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months' time?A . GBP/USD = 1.74B . GBP/USD...
What are the limitations of an internal control system in Rio's business?
Rio owns an architects business which employs 12 skilled architects and four administrative staff. The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible. What are the limitations of...
What types of risk are being presented here?
MNB is a multinational IT company with headquarters in Asia and with operations in all continents. MNB is attempting to expand its operations in Europe. This is seen as a major challenge as the European market is very well developed and highly competitive. MNB develops and manufactures its own products....
Which of the following are correct?
UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products. One of the factors that is being considered in a stress test requested by UJK's Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts...
What is the correct course of action?
You are the Management Accountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc. You discover that a trainee employee, who is responsible for cleaning out the delivery vans has been taking damaged goods and packets which have reached their sales...
The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?
The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?A . The shares have more unsystematic risk than the stock market average.B . The shares have more systematic risk than the stock market average.C . The shares have more total risk...
Which of the following statements are true?
DFG's call centre budgets four minutes for its operators to deal with a customer's enquiry and conclude the call. Team leaders are evaluated on the basis of the average call length. Simone is a team leader. Her team's average call length is five minutes and 30 seconds. Simone accepts full...
When planning for this audit, which of the following must be completed?
You have been assigned the role of lead internal auditor. Your task is to carry out the annual assessment of the production line maintenance department. When planning for this audit, which of the following must be completed?A . Prepare the report.B . Establish whether the controls are adequate or not.C...
A. This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A
DRAG DROP G plc has decided to move its production plant to overseas Country A. This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A. The Production Director has identified...
Which of the following will usually increase shareholders' wealth?
The managers of a company are agents for the shareholders tasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?A . Investing in projects with the shortest payback period.B . Investing in projects with positive net present value.C . Investing in projects with the greatest level...
