(b) Briefly explain the two types of informal communication known as the grapevine and rumour. (6 marks)

(b) Assuming that Thai Curry Ltd claims relief for its trading loss against total profits under s.393A ICTA 1988,calculate the company’s corporation tax liability for the year ended 30 September 2005. (10 marks)

(c) (i) State the date by which Thai Curry Ltd’s self-assessment corporation tax return for the year ended

(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)