Business Analysis Question Paper
Professional Level – Essentials Module
Business Analysis
Wednesday 15 June 2011
Time allowed Reading and planning: Writing:
15 minutes 3 hours
This paper is divided into two sections: Section A – This ONE question is compulsory and MUST be attempted Section B – TWO questions ONLY to be attempted Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper P3
This is a blank page. The question paper begins on page 3.
2
Section A – This ONE question is compulsory and MUST be attempted The following information should be used when answering question 1 1 Introduction The EcoCar company was formed six years ago to commercially exploit the pioneering work of Professor Jacques of Midshire University, a university in the country of Erewhon. Over a number of years he had patented processes that allowed him to use Lithium-ion batteries to power an electric car, which could travel up to 160 kilometres before it needed recharging. Together with two colleagues from the university, he set up EcoCar to put the car into commercial production. Coincidentally, an area in the south of Midshire was suffering from major industrial decline. This area was centred on the former Lags Lane factory of Leopard Cars, which had recently been shut down by its parent company, bringing to an end 60 years of continuous vehicle manufacture on that site. Many skilled car production workers had been made redundant in an area that already suffered significant unemployment. Grants from the regional council and interest-free loans from the government allowed EcoCar to purchase and re-furbish part of the Lags Lane site and take on a hundred of the skilled workers made redundant by Leopard Cars. The company
Business Analysis
Wednesday 15 June 2011
Time allowed Reading and planning: Writing:
15 minutes 3 hours
This paper is divided into two sections: Section A – This ONE question is compulsory and MUST be attempted Section B – TWO questions ONLY to be attempted Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper P3
This is a blank page. The question paper begins on page 3.
2
Section A – This ONE question is compulsory and MUST be attempted The following information should be used when answering question 1 1 Introduction The EcoCar company was formed six years ago to commercially exploit the pioneering work of Professor Jacques of Midshire University, a university in the country of Erewhon. Over a number of years he had patented processes that allowed him to use Lithium-ion batteries to power an electric car, which could travel up to 160 kilometres before it needed recharging. Together with two colleagues from the university, he set up EcoCar to put the car into commercial production. Coincidentally, an area in the south of Midshire was suffering from major industrial decline. This area was centred on the former Lags Lane factory of Leopard Cars, which had recently been shut down by its parent company, bringing to an end 60 years of continuous vehicle manufacture on that site. Many skilled car production workers had been made redundant in an area that already suffered significant unemployment. Grants from the regional council and interest-free loans from the government allowed EcoCar to purchase and re-furbish part of the Lags Lane site and take on a hundred of the skilled workers made redundant by Leopard Cars. The company