1. C Ltd is a large company and is a market leader in a highly competitive industry. C Ltd has recently undertaken a corporate appraisal and identified that it has a significant amount of cash available for future investment. It is considering using this to purchase one of its smaller rivals. Within the corporate analysis, which ONE of the following categories would C's cash surplus be included within?

a. Weakness

b. Strength

c. Opportunity

d. Threat

2. F's strategic management accountants have recently undertaken gap analysis. They have forecasted the likely position of the company after taking account of planned efficiency savings as well as after all planned strategic initiatives. They have identified that there is still a gap between F's forecast position and its ideal position. This remaining gap is referred to as the gap. Your task: Insert the missing word in the above sentence.

a. Diversification

b. Expansion

c.Efficiency

d.Forecasting

3. Which of the following definitions applies to the derived demand method of forcasting?

a. It comprises a group of experts who are encouraged, in a relatively unstructured atmosphere, to speculate about future developments in particular areas and to identify possible courses of action.It is a method of generating ideas.

b. There are different approaches but a popular one is for a number of people (no fewer than six, no more than fifteen) drawn from all levels of management and expertise to meet and propose answers to an initial single question posed by the session leader.

c. It involves analysing some aspects of economic activity so that the level of other aspects can be deduced and projected. The principle is simple, but the practice is complex and costly.

d. It seeks to avoid the group pressures to conformity that are inherent in the think tank method. It does this by individually, systematically and sequentially interrogating a panel of experts.

4. Which of the following is a disadvantage of scenario planning?

a. High cost

b. Reduced communication within the organisation

c. Wastes management time

d. Discourages creative thinking

5. Which of the following changes would BOTH head to a rise in the value of a real option? Option duration Project uncertainty

a. Increases Increases

b. Increases Decreases

c. Decreases Increases

d. Decreases Decreases