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Issues Practise exercises

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Issues Practise exercises

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 25, 2019 at 7:02 am #503240
    dineise18
    Member
    • Topics: 8
    • Replies: 7
    • ☆

    Morning teacher,

    Hope you are well. I would like your help in some issue. I have this questions but i am not sure about the answer and would like your opinion.
    Some questions i believe is the way the question was made, that is why i did not understand.

    Thanks in advance

    1) Which of the following are Stakeholder groups for a listed company?
    a) Employees
    b) Ordinary shareholders
    c) The board of directors
    d) Trade Creditors

    My answer is B,C and D. Is it correct?

    2) When using the exepected value criterion, it is assumed that the individual wants to

    a) Minimise risk irrespective of the level of return.
    b) Minimise risk for a given level of return.
    c) Maximise return irrespective of the level of risk.
    d) Maximise return for a given level of risk.

    My answer is D. Is it correct?

    3) The higher Risk of a project can be recognised by decreasing

    a) The cost of the initial investment of the project.
    b) The estimates of future cash inflows from the project.
    c) The Internal rate of return of the project.
    d) The required rate of return of the project.

    My answer is D. Is it correct?

    4) A Scrip issue with perfect information

    a) Increases the market price of the share.
    b) Increases individual shareholders wealth
    c) Decreases the debt or equity ratio of the company
    d) Decreases earning per share.

    My answer is A. Is it correct?

    5) All of the following are variables that can be manipulated to affect fiscal policy except

    a) Personal taxes
    b) Government expenditure on goods and services
    c) Government expenditure on unemployment benefits
    d) The rate of interest

    My answer is A. Is it correct?

    6) Which of the following lists shows sources of finance in increasing levels of risk from the point of view of the company raising finance?

    a) Mortgage,Unsecured bank loan, preference shares, ordinary shares
    b) Mortgage, preference shares, Unsecured bank loan, ordinary shares
    c) Ordinary shares, Unsecured bank loan, preference shares, Mortgage
    d) Ordinary shares, preference shares, Unsecured bank loan, Mortgage.

    My answer is D. Is it correct?

    I do not have answers for this question, that is why i did by my self. Sorry to bother you.

    January 25, 2019 at 10:34 am #503251
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Why on earth are you attempting questions for which you do not have answers?? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations.

    1. The answer is A, B and D
    2. The answer is C
    3. The answer is B
    4. The answer is D
    5. The answer is D
    6. Correct.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Issues Practise exercises’ is closed to new replies.

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