(iii) Lateral or horizontal. (3 marks)
(b) Briefly explain the two types of informal communication known as the grapevine and rumour. (6 marks)
(c) (i) State the date by which Thai Curry Ltd’s self-assessment corporation tax return for the year ended
30 September 2005 should be submitted, and advise the company of the penalties that will be due if
the return is not submitted until 31 May 2007. (3 marks)
(ii) State the date by which Thai Curry Ltd’s corporation tax liability for the year ended 30 September 2005
should be paid, and advise the company of the interest that will be due if the liability is not paid until
31 May 2007. (3 marks)
(b) Discuss the limitations of the above estimates. (6 marks)
(c) Discuss the factors that might influence whether the initial bid is likely to be accepted by the shareholders of Wragger plc.
(d) Estimate by how much the bid might be increased without the shareholders of Paxis suffering a fall in their expected wealth, and discuss whether or not the directors of Paxis should proceed with the bid. (5 marks)
