Page 28 - CIMA MCS Workbook February 2019 - Day 1 Suggested Solutions
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CIMA FEBRUARY 2019 – MANAGEMENT CASE STUDY
Conclusion
Overall, Smilebrite seems to be performing less well in comparison to Crowncare, with Smilebrite
suffering downward pressure on profitability and liquidity, whilst increasing gearing. If Crowncare
were to acquire control of Smilebrite, it would presumably seek to achieve the same operating
performance for the newly acquired subsidiary as for its current business.
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