Question 3c
Examiners Report

In part (c), candidates were asked to assess whether or not the MBO was beneficial. Although not specified in the requirements, the appropriate way to assess benefit was to compare the value of the investment, the MBO in this case, with the cost of that investment, the price to be paid for the MBO.

This part of the question was not done well and it seems that many candidates did not know which approach to take. It is to be stressed that at P4 level, it is expected that candidates will have a deep knowledge of the subject, obtained from sustained and effective study over a long period of time.

This deep knowledge would enable them to identify how to approach answering the question. Unfortunately, not many candidates demonstrated that they had studied this area in detail.

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