Exam Help

Question 1

When answering a question on evaluating an investment or project, what investment appraisals can you talk about?

Answer 1

Payback, ARR, NPV, sensitivity analysis

Question 2

What is liquidity?

Question 3

What are the liquidity ratios?

Answer 3

Current ratio and acid test ratio

Question 4

What are the profitability ratios?

Answer 4

ROCE, gross profit margin, net profit margin, operating profit margin

Question 5

What are the efficiency ratios?

Answer 5

Inventory turnover, payables days, receivables days

Question 6

What acronym do you need to consider when doing case study data application and what does it stand for?

Answer 6

PADLS:
Patterns - are there trends in the data?
Anomalies - Is there anything unusual / that stands out?
Data Manipulation - E.g making a calculation.
Links and limitations - Can you link pieces of data? Are there limitations of the data?
Support - How can you use the data to support your argument/eval?

Question 7

What points do you need to consider to provide good analysis?

Answer 7

• Show depth - use models and theories
• Each argument should provide a logical and developed chain of reasoning
• Arguments in context (seasoning)
• Address the HOWs and WHYs
• Selectivity - don’t pick too many arguments/too many underdeveloped points

Question 8

What acronym to think about when making a good evaluation alongside AJIM?

Answer 8

5 Ws
What is your recommendation?
Why did you reach that judgement?
What was the most important reason for your judgement?
Why did you come to that judgement over the alternative?
What might your judgement depend on?

Question 9

What acronym can help you write a well structured evaluation?

Answer 9

AJIM
Answer the question
Justify your judgement or recommendation
IT DEPENDS ON.
What was the most important reason that led you to your judgement.