Standards For Financial Decision Making

926 WordsOct 24, 20154 Pages
Abstract. The article reviewed was Standards for Financial Decision-Making: Legal, Ethical, and Practical Issues. The key of the abstract is to emphasize the existence of standards and statutory mechanisms for financial decision-making. The article is based on standards of the National Guardianship Association (NGA) (p. 1275). Introduction. The authors study the meaning of term “standard”. Some dictionaries determine the term “standard” as a model of acceptance, others – as a measuring criterion. If entities do not operate under the established standards, they face with sanctions for ethical violations and professional negligence. The authors analyzes principles and guidance of NGA standards, and frequent mistakes when making financial decisions. The main objective of the study is to analyze conflicting issues of financial decision-making, guardianship problems, and adoption of NGA standards (pp. 1275- 1276). The study is important because it demonstrates practical approaches of applying standards to the common financial decisions. The authors consider two problems: the impact of fiduciary duties on decision-making standards, and the acceptance of model behavior by guardians of business. Literature Review. The authors use a systematic review of literature in the research. The literature review is categorized into three parts: general principles of decision-making, the role of guardian and conservator in decision-making, the relationships between fiduciary duties and
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