Subject: BUSSINESS, MANAGEMENT & FINANCE

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BMF – Nov 2020 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Explanation of loan covenants, reasons and benefits for share repurchase, and features of a finance lease arrangement.

Question

(a) For many loan agreements, the borrower is required to provide undertakings or guarantees of some kind.
Distinguish between covenants and guarantees. (5 Marks)

(b) State THREE reasons why a company will repurchase its shares and THREE benefits that will accrue to the company for doing so. (6 Marks)

(c) Companies can acquire assets with finance lease instead of buying assets with equity or debt capital.
State SIX main features of a finance lease arrangement. (9 Marks)

(Total 20 Marks)

Answer

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Tags: Corporate finance, Finance lease, Guarantees, Loan Covenants, Share repurchase
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q5 – Investment Decisions

Evaluate the investment project using IRR and advise management on the project feasibility.

Question

Uhuru Nigeria Limited wants to buy a new item of equipment which will be used to improve service delivery to its customers. Using the internal rate of return (IRR) method of investment appraisal, you are required to evaluate the project and advise the management of the company. Estimated cash flows from the project are as provided below:

Year	Cash Flow (N)
0	(400,000)
1	140,000
2	150,000
3	170,000
4	190,000

The expected minimum required rate of return of the company is fixed at 25%.

Answer

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Tags: Capital Budgeting, Cash Flow Analysis, Internal Rate of Return (IRR), Investment Appraisal, Rate of Return
Level: Level 1

Topic: Investment Decisions
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q4 – The Role of Professional Accountants in Business and

Explanation of ethical dilemmas, powers of professional bodies, and methods for resolving ethical dilemmas.

Question

(a) Distinguish between ethical dilemma and conflict of interest. (4 Marks)
(b) Globally, professional bodies are backed by law, consequently, a measure of authority is conferred upon them which they regularly exercise whenever the situation or circumstance demands.
State THREE powers of a professional body. (6 Marks)
(c) State FIVE possible ways of resolving ethical dilemma in a business environment. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Business Ethics, Conflict of Interest, Conflict Resolution, Ethical dilemma, Professional Body Powers
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q2 – Management, Individual, and Organisational Behaviour

Explanation of reinforcement theory and self-efficacy, and their applications in the business environment.

Question

(a) Describe reinforcement theory and state the main assumption that guides reinforcement theory.
(b) Explain the ways by which reinforcement theory can be employed in the business environment.
(c) What is self-efficacy? State and explain the ways by which levels of self-efficacy impact human functions.

(Total 20 Marks)

Answer

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Tags: Behavioral Theory, Motivation, Positive Reinforcement, Reinforcement Theory
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q1b – The Business Environment

State five functions each for the Administration and Finance departments of an organization.

Question

Innoson Transport Company plans to create two new departments, administration and finance. In view of this, two managers will be hired to oversee these functional units.
State FIVE functions of each of the two departments.

Answer

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Tags: Cultural Differences, Hofstede's Dimensions, International business, National Culture
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SB – Q1a – The Business Environment

Identify and explain Hofstede's five dimensions of national culture.

Question

Geert Hofstede gave an international perspective on suggesting that culture differs among nations.

Identify and explain the FIVE dimensions of national culture as suggested by Hofstede.

Answer

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Tags: Cultural Analysis, Cultural Dimensions, Hofstede, International business, National Culture
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF- Nov 2020 – L1 – SA – Q20 – The Business Environment

Identify the correct statement regarding the laws of demand and supply.

Question

Which of the following statements in relation to the laws of demand and supply is correct?
A. An increase in price leads to an increase in demand
B. A decrease in price leads to a decrease in demand
C. If demand is highly elastic, a reduction in the sales price will result in an increase in total sales revenue
D. The quantity of a good that suppliers are willing to sell falls when the price of the good rises
E. The quantity of a good that suppliers are willing to sell rises when the price of the good falls

Answer

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Tags: Demand, Economic Laws, Supply
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q19 – The Business Environment

Identify a feature of monopolistic competition.

Question

Which of the following is a feature of monopolistic competition?
A. Small number of suppliers
B. Monitors the actions of the other firms
C. Faces a kinked demand curve
D. Knowledge is widespread, but not perfect
E. Decisions of one firm influence the decisions of other firms

Answer

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Tags: Economic theory, Market Features, Monopolistic Competition
Level: Level 1

Topic: The Business Environment
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q18 – Business and Organizational Structures and Choices

Identify a key characteristic of a global company.

Question

One of the characteristics of a global company is that:
A. Management makes strategic decisions for each foreign market
B. Products are adapted to the requirements of the local market
C. Marketing is adapted in each country to suit the local culture
D. The value chain in each country of operation is optimised
E. The senior managers are likely to come from different countries

Answer

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Tags: Global Company, International Strategy, Management
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q17 – Communications in Business

Identify the decade when early communication models were developed.

Question

Early communication models were developed in the:
A. 1910s
B. 1920s
C. 1930s
D. 1940s
E. 1950s

Answer

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Tags: Business Communications, Communication Models, History
Level: Level 1

Topic: Communications in Business
Series: NOV 2020

BMF – Nov 2014 – L1 – SA – Q6 – Basic Management Functions

Identifies the management function ensuring policies are followed.

Question

The management function that ensures that things are done in accordance with established policies and practices is:

A. Organising
B. Coordinating
C. Controlling
D. Planning
E. Motivating

Answer

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Tags: Controlling, Management Functions, Organising, Policies
Level: Level 1

Topic: Basic Management Functions
Series: NOV 2014

BMF- Nov 2014 – L1 – SA – Q5 – The Business Environment

Identifies the statement that defines the purpose and direction of an organisation.

Question

Which of the following defines the purpose of an organisation and gives the direction in which it is heading?

A. Vision statement
B. Mission statement
C. Business objective
D. Strategic intent
E. Organisational goal

Answer

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Tags: Business Objectives, Mission, Organisational Goals, Strategy, Vision
Level: Level 1

Topic: The Business Environment
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q4 – Management, Individual, and Organizational Behavior

Identifies the disadvantage of decentralisation in management.

Question

The following are the advantages of decentralisation EXCEPT that it:

A. Promotes development of general managers
B. Aids adaptation to fast-changing environment
C. Enhances a uniform policy
D. Relieves top management of some burden of decision-making
E. Gives managers more freedom and independence in decision-making

Answer

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Tags: Decentralisation, Decision Making, Management, Organisational Structure
Level: Level 1

Topic: Management, Individual, and Organizational Behavior

BMF – Nov 2014 – L1 – SA – Q3 – Business and Organizational Structures and Choices

Identifies the factor irrelevant to deciding the form of a business enterprise.

Question

Which of the following is NOT a factor to be considered when deciding the form of a business enterprise?

A. The degree of personal liability
B. The willingness to share decision-making powers and risks
C. The cost of establishing the business
D. The location of the business
E. The legal requirements concerning the provision of public information

Answer

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Tags: Business Structure, Decision Making, Legal Requirements, Liability
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q2 – Nature of Business, Types, and Objectives

Identifies the inappropriate social objective for a business.

Question

Which of the following should NOT be the social objective of a business organisation?

A. Pay tax as at when due
B. Obey laws enacted by the National Assembly
C. Keep clean environment
D. Encourage tax avoidance
E. Encourage tax evasion

Answer

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Tags: Business, Ethics, Law, Social Objectives, Tax
Level: Level 1

Topic: Nature of Business, Types, and Objectives
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q1-Q1 – Nature of Business, Types, and Objectives

Questions on Latin meaning, business objectives, and factors influencing business structure.

Question

The Latin word “agenda” means:

A. Matters arising

B. Notice

C. Correspondence

D. Report

E. Things to be done

Answer

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Tags: Business Knowledge Question Short Summary, Business Objectives, Business Structure
Level: Level 1

Topic: Nature of Business, Types, and Objectives
Series: NOV 2014

BMF – May 2015 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Describe the Boston Consulting Group (BCG) matrix used for business portfolio management.

Question

Describe the Boston Consulting Group (BCG) matrix.

Answer

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Tags: BCG Matrix, Product-Market Strategy, Strategic Analysis
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2015

BMF – May 2015 – L1 – SB – Q5b – Management, Individual, and Organisational Behaviour

Discuss hygiene factors and motivators in Herzberg’s two-factor theory.

Question

Write briefly on the following:
i. Hygiene factors
ii. Motivators

Answer

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Tags: Herzberg’s Two-Factor Theory, Hygiene Factors, Job Satisfaction, Motivators
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: MAY 2015

BMF – May 2015 – L1 – SB – Q5a – Management, Individual, and Organisational Behaviour

List and explain the five levels of human needs as per Maslow’s hierarchy.

Question

List and explain the FIVE general types of human needs in ascending order.

Answer

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Tags: Human Needs, Maslow’s Hierarchy, Motivation Theory
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: MAY 2015

BMF – May 2015 – L1 – SB – Q4 – Basics of Business Finance and Financial Markets

Discuss major cash flow items in capital investment projects and explain the payback period investment appraisal method.

Question

a. List and explain FOUR major cashflow items to be included in a capital investment project. (8 Marks)
b.
i. Explain the payback period technique of investment appraisal. (4 Marks)
ii. State TWO advantages and TWO disadvantages of payback period. (8 Marks)

Answer

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Tags: Capital Investment, Cash Flows, Investment Appraisal, Payback Period
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2015

Subject: BUSSINESS, MANAGEMENT & FINANCE

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BMF – Nov 2020 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Explanation of loan covenants, reasons and benefits for share repurchase, and features of a finance lease arrangement.

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BMF – Nov 2020 – L1 – SB – Q5 – Investment Decisions

Evaluate the investment project using IRR and advise management on the project feasibility.

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BMF – Nov 2020 – L1 – SB – Q4 – The Role of Professional Accountants in Business and

Explanation of ethical dilemmas, powers of professional bodies, and methods for resolving ethical dilemmas.

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BMF – Nov 2020 – L1 – SB – Q2 – Management, Individual, and Organisational Behaviour

Explanation of reinforcement theory and self-efficacy, and their applications in the business environment.

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BMF – Nov 2020 – L1 – SB – Q1b – The Business Environment

State five functions each for the Administration and Finance departments of an organization.

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BMF – Nov 2020 – L1 – SB – Q1a – The Business Environment

Identify and explain Hofstede's five dimensions of national culture.

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BMF- Nov 2020 – L1 – SA – Q20 – The Business Environment

Identify the correct statement regarding the laws of demand and supply.

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BMF – Nov 2020 – L1 – SA – Q19 – The Business Environment

Identify a feature of monopolistic competition.

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BMF – Nov 2020 – L1 – SA – Q18 – Business and Organizational Structures and Choices

Identify a key characteristic of a global company.

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BMF – Nov 2020 – L1 – SA – Q17 – Communications in Business

Identify the decade when early communication models were developed.

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BMF – Nov 2014 – L1 – SA – Q6 – Basic Management Functions

Identifies the management function ensuring policies are followed.

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BMF- Nov 2014 – L1 – SA – Q5 – The Business Environment

Identifies the statement that defines the purpose and direction of an organisation.

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BMF – Nov 2014 – L1 – SA – Q4 – Management, Individual, and Organizational Behavior

Identifies the disadvantage of decentralisation in management.

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BMF – Nov 2014 – L1 – SA – Q3 – Business and Organizational Structures and Choices

Identifies the factor irrelevant to deciding the form of a business enterprise.

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BMF – Nov 2014 – L1 – SA – Q2 – Nature of Business, Types, and Objectives

Identifies the inappropriate social objective for a business.

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BMF – Nov 2014 – L1 – SA – Q1-Q1 – Nature of Business, Types, and Objectives

Questions on Latin meaning, business objectives, and factors influencing business structure.

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BMF – May 2015 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets

Describe the Boston Consulting Group (BCG) matrix used for business portfolio management.

You're reporting an error for "BMF – May 2015 – L1 – SB – Q6 – Basics of Business Finance and Financial Markets"

BMF – May 2015 – L1 – SB – Q5b – Management, Individual, and Organisational Behaviour

Discuss hygiene factors and motivators in Herzberg’s two-factor theory.

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BMF – May 2015 – L1 – SB – Q5a – Management, Individual, and Organisational Behaviour

List and explain the five levels of human needs as per Maslow’s hierarchy.

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BMF – May 2015 – L1 – SB – Q4 – Basics of Business Finance and Financial Markets

Discuss major cash flow items in capital investment projects and explain the payback period investment appraisal method.

You're reporting an error for "BMF – May 2015 – L1 – SB – Q4 – Basics of Business Finance and Financial Markets"

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