MAC$2602$ ASSESSMENT THREE $(3)$ S$2-2024$

QUESTION $1($continued$)$

$1\mathrm{.}3$ Apply cash flow principles and select an example that does not represent a sunk cost.

a$)$ SENWES Ltd paid R$800000$ to a market research company to research the proposed new

financial product for small$-$scale farmers.

b$)$ BMW PLC invested R$10000000$ in imported parts used in the assembly of electric vehicles

at the beginning of production of these vehicles.

c$)$ Big Pharm Ltd paid R$100000$ to a legal firm for the protection of intellectual rights of the

food$-$and$-$mouth vaccine it developed.

d$)$ Solar Galore Ltd spent R$5000000$ on research and development relating to the latest

technology used in solar inventors.

$1\mathrm{.}4$ Select an alternative that is not a reason why stakeholders can influence the future

strategies of an organisation.

a$)$ The organisation is in existence for more than ten years and is in its maturity phase.

b$)$ The organisation has a large institutional shareholder that expects high returns from their

investment.

c$)$ The company has cash flow problems and needs an overdraft facility or loan from its bank.

d$)$ The main customer of the organisation expects special discounts.

$1\mathrm{.}5$ You observed the following at a company you recently started a new job at:

$(1)$ All staff have access to a wide range of information including details of client accounts,

to enable good client service.

$(2)$ The organisation has a graduate program, whereby they offer bursaries to students and

then employ them as trainees once they have completed their studies.

$(3)$ A free annual holiday is given to all directors, and this is not declared as it is not in the

form of a cash payment.

$(4)$ Sometimes, but not very often, if there is a large expense the company will capitalise it$,$ but

only it if is over R$100000.$

Which of the above actions adhere to good corporate governance?

a$)$ All of the above statements

b$)$ Statements $(1)(2)$ and $(3)$

c$)$ Statement $(1)$ and $(2)$