Question 1

a) The working capital cycle of the firm is the time from payment to suppliers for the materials to receiving cash from the sale of goods produced from the materials. It can be negative Please comment on the sentence above.

b) On 6 May 2019, Axiata Group Berhad announced to Bursa Malaysia that it is in discussion with Telenor ASA to establish a new merged global entity which will combine the operations of Axiata and Telenor in nine countries, namely Malaysia, Thailand, Sri Lanka, Pakistan, Indonesia, Cambodia, Myanmar, Bangladesh and Nepal.

Based on the news above, please outline four (4) advantages and disadvantages of mergers.

d) In your opinion, why do some businesses never expand?