Series: NOV 2015

Search 500 + past questions and counting.

CSME – Nov 2015 – L2 – Q7 – Corporate Strategy Formulation

Analyzes reasons for slow growth in DAB phone sales, uses the S-shaped growth curve to evaluate market stages, and suggests sales improvement strategies.

Question

Ade John is a graduate of XYZ University. For his final project work in the Department of
Electronics and Electrical Engineering, he designed a cell-phone that is rugged, cheap,
handy and not sophisticated.
During his national service year, he kept toying with the idea of manufacturing the cellphone. To ascertain that there is a market for the phone, he carried out a series of market surveys among rural farmers, artisans, market women, etc. Each time, he was convinced that a market actually exists for his design. He also made contact with some manufacturers of cell-phone components. He entered
into an agreement with CKT Japan to import cell-phone accessories to enable him
assemble them in Nigeria. DAB phone is the first of its kind in the Nigerian market and
production and assembly commenced in a small room in his uncle‟s house at Ikare.
The first batch of phones manufactured by DAB Company was supplied to cell-phone
vendors in cities on „sale or return‟ basis. To encourage distributors to accept the
phones, a 15% margin was allowed. In addition, independent sales persons (hawkers)
were given between 10 -12% margin to sell the product. In spite of the low price of DAB
phones, demand was disappointing at the end of the first year. Nevertheless, Ade John is
still optimistic about the commercial viability of the phone if only he could develop an
effective strategy to market the DAB phones

Required:
a. Identify and explain TWO reasons for the slow growth of sales of DAB phones. (4 Marks)
b. With the aid of an S-shaped growth curve, evaluate market development of DAB phones. (6 Marks)
c. Recommend the strategies that Ade John can use to improve sales. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Market Entry, Product Development, S-shaped Growth Curve, Sales Strategy
Level: Level 2

Topic: Corporate Strategy Formulation
Series: NOV 2015

CSME – Nov 2015 – L2 – Q6 – Corporate Governance

Evaluates how specific corporate governance issues impact the effectiveness of a company's governance.

Question

Explain briefly how the following key issues in corporate governance establish how well or badly a company is governed:

a. The role and responsibilities of the board of directors
b. The composition and balance of the board of directors
c. Financial reporting, narrative reporting, and auditing
d. Directors’ remuneration
e. Risk management and internal control

Answer

Find Related Questions by Tags, levels, etc.

Tags: Board Composition, Corporate Governance, Directors’ Remuneration, Financial Reporting, Risk Management
Level: Level 2

Topic: Corporate Governance
Series: NOV 2015

CSME – Nov 2015 – L2 – Q5 – Corporate Governance

Outlines key responsibilities and duties of the board in corporate governance, relevant for improving corporate structure and performance.

Question

The owner of ABC Company learned from a conference and a professional magazine that weak corporate governance accounted for recent corporate failures in Nigeria. Many board members were found lacking a clear understanding of board responsibilities and duties.

Required:
The Managing Director will soon address the board and has requested a paper detailing the board’s responsibilities and duties.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Board Duties, Board Structure, Corporate Governance, Strategic Oversight
Level: Level 2

Topic: Corporate Governance
Series: NOV 2015

CSME – Nov 2015 – L2 – Q4 – Risk Management and Corporate Strategy

Analyzes strengths and weaknesses of Toyin Trust Insurance Plc pre- and post-2000 ownership changes, and suggests strategies for sustaining the company.

Question

Toyin Trust Insurance Company is one of the duly registered insurance companies in Nigeria. Ten years after it started operations in 1990, the company had become a household name in the market. Its strengths included timely payment of claims and introduction of quality products that captured changing customers’ needs.

At inception, the company was 100% foreign-owned, with five of the seven directors being experienced expatriate insurance practitioners. However, by 2000, over 90% of the equity had been transferred to Nigerian investors. In 2009, following reorganization, many experienced senior managers resigned, and inexperienced staff took over key positions, leading to a decline in service quality and a 40% drop in premium collection.

Required:

a. Analyze the strengths of Toyin Trust Insurance Plc before 2000. (5 Marks)
b. Analyze the strengths and weaknesses of Toyin Trust Insurance Plc after 2000. (5 Marks)
c. Suggest essential strategies to sustain Toyin Trust Insurance Plc. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Growth, Organizational Challenges, Risk Mitigation, Strategic Management
Level: Level 2

Topic: Corporate Governance, Risk Management and Corporate Strategy
Series: NOV 2015

CSME – Nov 2015 – L2 – Q3 – Ethics in Business

Describes the nature of business and professional ethics, Kohlberg’s theory of moral development, and criticisms of the theory.

Question

Kalu, a competent consultant and accountant, works in Bosun and Company Limited. The company realized that almost all of its newly employed entry-level staff are deficient in business and professional ethics. Consequently, the Human Resources Manager recommended to the CEO that a training program on business and professional ethics should be organized. Kalu is nominated as a resource person to speak at the training program.

Required:
a. How should Kalu explain the nature and importance of business ethics and professional ethics? (6 Marks)
b. Advise Kalu on how he should analyze Kohlberg’s theory of moral development in an attempt to explain to the trainee participants how people generally develop a sense of morality both in personal and professional life. (10 Marks)
c. Discuss any TWO of the criticisms of Kohlberg’s theory. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Ethics, Ethical Training, Kohlberg’s Theory, Moral Development, Professional Ethics
Level: Level 2

Topic: Ethics in Business
Series: NOV 2015

CSME – Nov 2015 – L2 – Q2 – Risk Management and Corporate Strategy

Develops a risk management program for theft, diversion, and safety issues; includes risk reduction and financing techniques.

Question

Dolly Homes Plc is a real estate firm based in Abuja. The firm builds residential apartments and office blocks in five states of the federation. The objective of Dolly Homes Plc is to deliver high-quality, aesthetically designed, and professionally built homes/offices to its customers at competitive prices. It employs several skilled and casual workers, construction supervisors, construction engineers, architects, and quantity surveyors.

The company maintains a store at each of its building sites, each manned by a storekeeper and an assistant. Building materials are purchased centrally and delivered to sites per material schedules prepared by the quantity surveyor.

Patronage from middle and high-income brackets has been impressive; however, recently, the company has been receiving complaints about poor quality. The most alarming complaint involved a legal threat for injuries sustained when a kitchen cabinet collapsed in a client’s home.

Management’s investigation revealed theft of materials, diversion, and re-work waste due to poor finishing. There were also job site accidents, leading to employee injuries, lost hours, and increased medical claims.

Management decided to establish a risk management program to address theft, diversion, and health/safety issues.

Required:
a. As an Accountant, develop a risk management program to address Dolly Homes Plc’s problems. (8 Marks)
b. Advise management on techniques to reduce the frequency of risk exposures in the future. (6 Marks)
c. Suggest risk financing techniques to protect the company’s staff from injuries and accidents. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Construction Industry Risks, Risk Financing, Risk Management, Safety Measures, Theft Prevention
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: NOV 2015

CSME – Nov 2015 – L2 – Q1c – Corporate Governance

Discusses the difference between rules-based and principles-based professional ethics in accountancy.

Question

What is the main difference between a rules-based and a principles-based code of professional ethics for accountants?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountancy Ethics, Principles-Based Ethics, Professional Conduct, Rules-Based Ethics
Level: Level 2

Topic: Corporate Governance
Series: NOV 2015

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

Question

There are different methods of managing and controlling risks. Explain and illustrate any THREE of the following approaches to risk management:
i. Risk Diversification
ii. Risk Transfer
iii. Risk Sharing
iv. Risk Hedging (15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit risk, Risk Diversification, Risk Hedging, Risk Sharing, Risk Transfer
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: NOV 2015

CSME – Nov 2015 – L2 – Q1a – Risk Management and Corporate Strategy

Explains credit risk management concepts, including exposure, losses, residual risk, and appetite.

Question

The finance director of Basket Company is preparing a proposal to present to the board of directors. He believes that the company is much too cautious in its policy of giving credit to customers. At the moment all customers are given 30 days’ credit. He believes that by increasing its exposure to credit risk, and increasing credit terms to 60 days, the company will achieve an increase in annual sales of up to 20%. He also thinks that some improvements in debt collection procedures will reduce the level of bad debts, although some bad debts cannot be avoided. He thinks that the value of sales where there is a default will fall each year from 2% of sales to 1.8% of sales. He proposes that in order to increase annual sales and profits, the company should be willing to increase its risk appetite and accept the risk of higher bad debts.

Required:

Using this example of managing credit risk, explain and illustrate the meaning of:
i. Exposure to risk
ii. Risk of losses
iii. Residual risk
iv. Risk appetite

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit Period, Credit risk, Exposure to Risk, Residual Risk, Risk Appetite, Risk of Losses
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: NOV 2015

PSAF – Nov 2015 – L2 – Q7 – Public Sector Reforms

Distinguish between basic infrastructure and development projects with examples and identify funding sources and characteristics.

Question

In order to achieve some development objectives, nations place emphasis on priority programmes like the provision of basic infrastructure and development projects, all of which require appropriate funding.

Required:

a. By means of specific relevant examples, distinguish between “basic infrastructure” and “development projects”. (3 Marks)

b. Discuss TWO development objectives which the priority programmes you refer to in (a) above are planned to achieve. (4 Marks)

c. Identify TWO sources of funding for these priority projects stating TWO distinct characteristics of each source identified and TWO factors that facilitate the commercial viability of the projects. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Basic Infrastructure, Development Projects, Funding, Public Finance, Viability
Level: Level 2

Topic: Public Sector Reforms
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

BF – Nov 2015 – L1 – SA – Q19 – Communications in Business

Identifying what is not a standard method of business communication.

Question

Which of the following is NOT a standard example of business communication method?
A. Circulars
B. Newsletters
C. Memorandum
D. Requisition
E. Telegram

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Communication, Methods, Standards
Level: Level 1

Topic: Communications in Business
Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q18 – Basic Management Functions

Identifying what is not a functional strategy.

Question

Which of the following options is NOT a functional strategy?
A. Marketing strategy
B. Production strategy
C. Personnel strategy
D. Financial strategy
E. Diversification strategy

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business, Functional Strategy, Strategy
Level: Level 1

Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q17 – The Business Environment

Identifying what is not an advantage of a partnership business.

Question

Which of the following is NOT an advantage of a partnership business?
A. More financial resources
B. Registration with Corporate Affairs Commission
C. Payment of Corporate Income Tax
D. Sharing of risk and losses
E. Continuity

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Business Structure, Partnership
Level: Level 1

Topic: The Business Environment
Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q16 – Basic Management Functions

Identifying how public sector strategy differs from private sector strategy.

Question

Strategy in the public sector differs from that in the private sector because:
A. They do not have customers
B. They do not have stakeholders
C. Planning horizons are determined by political considerations rather than market conditions
D. They do not have to make a profit
E. They do not manage cost

Answer

Find Related Questions by Tags, levels, etc.

Tags: Private Sector, Public Sector, Strategy
Level: Level 1

Topic: Basic Management Functions
Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q15 – Communications in Business

Identifying the term for communication flowing between superior and subordinate.

Question

Communication that flows from the superior to the subordinates and back from the subordinates to the superior is called:
A. Vertical
B. Horizontal
C. External
D. Oral
E. Written

Answer

Find Related Questions by Tags, levels, etc.

Topic: Communications in Business
Series: NOV 2015

BF – Nov 2015 – L1 – SA – Q14 – Communications in Business

Identifying what is not a barrier to effective communication.

Question

Which of the following is NOT a barrier to effective communication?
A. Status differences
B. Fear
C. Information overload
D. Information download
E. Verbal difficulties

Answer

Find Related Questions by Tags, levels, etc.

Tags: Barriers, Communication, Effective communication
Level: Level 1

Topic: Communications in Business
Series: NOV 2015

Series: NOV 2015

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

CSME – Nov 2015 – L2 – Q7 – Corporate Strategy Formulation

Analyzes reasons for slow growth in DAB phone sales, uses the S-shaped growth curve to evaluate market stages, and suggests sales improvement strategies.

CSME – Nov 2015 – L2 – Q6 – Corporate Governance

Evaluates how specific corporate governance issues impact the effectiveness of a company's governance.

CSME – Nov 2015 – L2 – Q5 – Corporate Governance

Outlines key responsibilities and duties of the board in corporate governance, relevant for improving corporate structure and performance.

CSME – Nov 2015 – L2 – Q4 – Risk Management and Corporate Strategy

Analyzes strengths and weaknesses of Toyin Trust Insurance Plc pre- and post-2000 ownership changes, and suggests strategies for sustaining the company.

CSME – Nov 2015 – L2 – Q3 – Ethics in Business

Describes the nature of business and professional ethics, Kohlberg’s theory of moral development, and criticisms of the theory.

CSME – Nov 2015 – L2 – Q2 – Risk Management and Corporate Strategy

Develops a risk management program for theft, diversion, and safety issues; includes risk reduction and financing techniques.

CSME – Nov 2015 – L2 – Q1c – Corporate Governance

Discusses the difference between rules-based and principles-based professional ethics in accountancy.

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

CSME – Nov 2015 – L2 – Q1a – Risk Management and Corporate Strategy

Explains credit risk management concepts, including exposure, losses, residual risk, and appetite.

PSAF – Nov 2015 – L2 – Q7 – Public Sector Reforms

Distinguish between basic infrastructure and development projects with examples and identify funding sources and characteristics.

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.

BF – Nov 2015 – L1 – SA – Q19 – Communications in Business

Identifying what is not a standard method of business communication.

BF – Nov 2015 – L1 – SA – Q18 – Basic Management Functions

Identifying what is not a functional strategy.

BF – Nov 2015 – L1 – SA – Q17 – The Business Environment

Identifying what is not an advantage of a partnership business.

BF – Nov 2015 – L1 – SA – Q16 – Basic Management Functions

Identifying how public sector strategy differs from private sector strategy.

BF – Nov 2015 – L1 – SA – Q15 – Communications in Business

Identifying the term for communication flowing between superior and subordinate.

BF – Nov 2015 – L1 – SA – Q14 – Communications in Business

Identifying what is not a barrier to effective communication.

Our offerings

Contact Info

Customer

Get In Touch