QUESTION 3 (50 MARK)

A. The total demand for merchandise by customers will sometimes change as a result of seasonal sales factors, sales volatility and even inaccurate sales forecasts. In addition, other factors such as transportation delays, company internal issues between management and employees as well as natural disasters such as the Covid-19 epidemic crisis facing the country now also cause a sudden change in the total demand of most merchandise in the market. At the same time, this is likely to contribute to the shortage of stocks of certain goods due to changes in the volume of demand.

So, as a finance manager, what strategies would you use to minimize the risks faced by the company due to the uncertainty of total demand by customers? Also, what are the affects you need to consider if you want to implement the strategy?

(15 marks)

B. From a financial perspective, describe the direct and indirect affects you have experienced since the transmission of Covid-19 began at the end of 2019. If you work with a monthly salary, describe the impact on your financial position from an individual and family perspective. But if you are self-employed or running a business, describe the implications on the financial position and liquidity of your business as well as its long-term stability as a result of the Covid-19 outbreak and the implementation of PKP.

(20 marks)

C. In your opinion, what is the state of the Malaysian economy and the socio-economic condition of Malaysians after 2021 ends?

(15 marks)