QUESTION $1($working capital management$)20$ MARKS

Colours Galore buys a standard type of acrylic paint known as Supreme Star

Acrylic in $50$ litre containers at a price of R$800$ per container and $19200$ of

these containers are used each year. The stock controller estimates that the

cost of placing and receiving an order is R$450.$ The annual cost of carrying

the product is R$6$ per container. If the company was to order $800$ containers

per order placed during the year:

a$.$ Calculate the number of orders made during the year. $[4]$

b$.$ Calculate the annual ordering costs. $[4]$

c$.$ Calculate the annual holding costs. $[4]$

d$.$ Calculate the total annual cost of inventory. $[4]$

e$.$ Briefly explain the four main categories of quality costs. $[4]$

Question $2$

$(15$marks$)$

Explain what a merger is$?$ Your answer should provide the different types of

mergers.

Question $3$

Define the various types of financial markets.

$(15$marks$)$