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Identify which of the following statements about the issue of ordinary preference shares can be regarded as advantages to the organisation.
(1) The control of the organisation will not be affected when the shares are issued as the shares normally do not have any voting rights.
(2) Ordinary preference shares present a lower risk to lenders/investors and the lenders/investors therefore require a lower return.
(3) Financial leverage will reduce as the number of ordinary preference shares (classified as equity) increases without bringing about dilution for the average shareholders.
(4) Due to withholding tax on dividends, the company that issued the shares does not pay tax on the dividends that were declared and paid.
(a) Statements (1),(2) and (3)
(b) Statements (1),(2) and (4)
(c) Statements (2),(3), and (4)
(d) Statements (1),(2),(3) and (4)
Select one:
a.
Statements (1),(2) and (4)
b.
Statements (2),(3), and (4)
c.
Statements (1),(2),(3) and (4)
d.
Statements (1),(2) and (3)
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Select which combination of the statements below will ALL need to be included in an explanation of strategic financial management.
(1) It deals with the allocation of scarce capital resources among competing opportunities.
(2) It identifies possible strategies that can maximise the net present value of the organisation.
(3) It entails the implementation and monitoring of the chosen strategy to achieve stated objectives.
(4) It defines the organisations strategy as well as make decisions about the allocation of resources to follow this strategy.
a) Statements (1) and (2)
b) Statements (2) and (3)
c) Statements (1),(2), and (3)
(d) Statements (1),(2), and (4)
Select one:
a.
Statements (1),(2), and (4)
b.
Statements (2) and (3)
c.
Statements (1) and (2)
d.
Statements (1),(2), and (3)
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The following statements relate to goals and outcomes of strategic planning. Identify the statement that is FALSE.
(a) Goal hierarchy deals with the allocation of resources.
(b) A principal goal when drafting a strategic plan is to develop it in such a way that it can be easily turned into action plans.
(c) Goal congruency has to do with how well different goals blend with each other.
(d) Goal sequencing entails that one goal is used as a method of obtaining the next goal.
Select one:
a.
Goal sequencing entails that one goal is used as a method of obtaining the

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