QUESTION $3$

$3\mathrm{.}1$ Beta can be calculated using historical data that is readily available on the stock exchange. It is also dependent on three fundamental factors. Describe the three fundamental factors of Beta.

$[6]$

$3\mathrm{.}2$ Inventory represents a huge investment on the part of the firm. A lot of Capital I usually tied up in inventory and this may result in cashflow challenges for the company, consequently affecting operations. Maintaining too little stock may result in stockouts that result in a loss of customers. Therefore, to maintain optimum stock levels companies would need to implement various types of controls.

$3\mathrm{.}2\mathrm{.}1$ List and describe the methods of inventory.

$[9]$

$3\mathrm{.}2\mathrm{.}2$ Describe the various form of inventory that exist

$[6]$

$3\mathrm{.}2\mathrm{.}3$ Describe the reasons for a company to withholding inventory.

$[6]$

$3\mathrm{.}2\mathrm{.}4$ The disadvantages of overstocking and understocking.

$[14]$