Page 7 - CIMA OCS Workbook May 2019 - Day 1 Tasks
P. 7
Chapter 2
FAMILIARISATION QUIZ
INTRODUCTION
Attempt this quiz after you have read the pre-seen at least twice. Try not to refer to the pre-seen
material when answering the questions unless you really can’t remember. However it is better to
look for the answers in the pre-seen if necessary rather than turning straight to the quiz solutions.
Question Response
What does VitaMine do? Manufactures vitamins, minerals and supplements (p3)
Who are the shareholders? Equally split between the 4 directors who founded the
company (p3)
Where is it based? Eastland, a country in SE Asia (p3)
How many markets does the Global (p3)
company operate in?
By how much did revenue grow in 49% (p3)
2018?
What drove such rapid growth? Two key factors highlighted:
1. VitaMine’s Reputation in the market as a company that
delivers an excellent quality of products and services
(p3)
2. A ‘thriving’ industry (p3) that has had ‘unprecedented’
sales growth over the last ten years. (p13)
What problems does this growth • ‘Managing the business, its staff and putting in place an
present for VitaMine? appropriate infrastructure’ to support the growth (p3)
• ‘It has been recognised that there is a need to build new
processes for HRM to ensure the well-being of both
existing and new staff.’ (p12)
• Liquidity – is there a risk of overtrading? Looking at the
statement of cash flows (p17), an additional E$504k was
tied up in working capital in 2018 v 2017.
Is the high industry growth • Global industry forecast to grow at 5-6% p.a. for the
sustainable? next few years (p13)
• However, there are concerns that the health benefits of
taking vitamins as supplements may be overstated (p24)
KAPLAN PUBLISHING 3
