44. The cross elasticity of demand between Product X and Product Y is negative This means that the Product X and Y can be classified as Complementary goods Substitute goods Inferior goods Normal goods
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43. Kaz is a professional accountant who works in TCW plc’s finance function. She is partnering in the long term with the
According to ICAEW’s guide yo finance business partnering, Kaz’s ethical principle that is most under threat by this relationship is
- Integrity
- Objectivity
- Confidentialty
- Professional behaviour
44. The cross elasticity of demand between Product X and Product Y is negative
This means that the Product X and Y can be classified as
- Complementary goods
- Substitute goods
- Inferior goods
- Normal goods
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- Which of the following are examples of financial objectives that a company might choose to pursue? A Provision of good wages and salaries B Restricting the level of gearing to below a specified target C Dealing honestly and fairly with customers on all occasions D Producing environmentally friendly products Which of the following is true? A Management accounting is highly regulated B Financial accounting is highly regulated C Management accounting is externally focused D Financial accounting is only internally communicated Which of the following is NOT a connected stakeholder? A Shareholders B Customers C Competitors D Local community…Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant: Gary: Donna, we have a real problem. Our operating cash is too low, and we are in desperate need of a loan. As you know, our financial position is marginal, and we need to show as much income as possibleand our assets need bolstering as well. Donna: I understand the problem, but I dont see what can be done at this point. This is the last week of the fiscal year, and it looks like well report income just slightly above breakeven. Gary: I know all this. What we need is some creative accounting. I have an idea that might help us, and I wanted to see if you would go along with it. We have 200 partially finished machines in process, about 20% complete. That compares with the 1,000 units that we completed and sold during the year. When you computed the per-unit cost, you used 1,040 equivalent units, giving us a manufacturing cost of 1,500 per unit. That per-unit cost gives us cost of goods sold equal to 1.5 million and ending work in process worth 60,000. The presence of the work in process gives us a chance to improve our financial position. If we report the units in work in process as 80% complete, this will increase our equivalent units to 1,160. This, in turn, will decrease our unit cost to about 1,345 and cost of goods sold to 1.345 million. The value of our work in process will increase to 215,200. With those financial stats, the loan would be a cinch. Donna: Gary, I dont know. What youre suggesting is risky. It wouldnt take much auditing skill to catch this one. Gary: You dont have to worry about that. The auditors wont be here for at least 6 to 8 more weeks. By that time, we can have those partially completed units completed and sold. I can bury the labor cost by having some of our more loyal workers work overtime for some bonuses. The overtime will never be reported. And, as you know, bonuses come out of the corporate budget and are assigned to overheadnext years overhead. Donna, this will work. If we look good and get the loan to boot, corporate headquarters will treat us well. If we dont do this, we could lose our jobs. Required: 1. Should Donna agree to Garys proposal? Why or why not? To assist in deciding, review the corporate code of ethics standards described in Chapter 1. Do any apply? 2. Assume that Donna refuses to cooperate and that Gary accepts this decision and drops the matter. Does Donna have any obligation to report the divisional managers behavior to a superior? Explain. 3. Assume that Donna refuses to cooperate; however, Gary insists that the changes be made. Now what should she do? What would you do? 4. Suppose that Donna is 63 and that the prospects for employment elsewhere are bleak. Assume again that Gary insists that the changes be made. Donna also knows that his supervisor, the owner of the company, is his father-in-law. Under these circumstances, would your recommendations for Donna differ?113-It is very common phenomenon that every business tries to earn maximum profit. In doing so many efforts are carried out by the companies to increase the sales. Marketing department puts its effort in the form of designing an eye-catching advertisement which attracts customers. "Those companies who spend more on advertisement, have more operating expenses as compared to others who advertise less." This statement is the perfect example of a. Neutral statement b. Normative statement c. All of the options d. Positive statement
- You just been employed as the new Chief Executive Officer of a medium-sized company that listed on the Ghana Stock ExchangeAt the Board Meeting the chairman advised you and your management team to avoid what he termed Agency problem"Explain the term "Agency Problem" in corporate governance, and briefly explain four () wys by which the shareholders of company encourage its managers act in wwys which are consistent with the objective of value maximizationWhich of the following statements about responsible return on investment is not true? Responsible return on investment is a tool for the main goal of calculating how much money a company makes from responsible business activities. includes components related to sustainability, responsibility, and ethics into its calculation. may be split up into the triple bottom line return on investment, stakeholder value return on investment, and the ethical return on investment. Question 26 Which of the following exemplary activities is part of the financing phase of responsible financial management? Deciding which community project to implement, based on the social impact of each project. Using the social return on investment to understand how much value your different responsible management activities create. Creating revenues through a social marketing campaign which are then used to fund the position of a responsibility officer. Establishing a governance system. Question 27 A protester at…Within the context of financial management, it is important that organizations attempt to align their managers' interests with that of the shareholders. In Chapter 16, Berk and DeMarzo (2020) provide several examples of agency conflict or a conflict between the owners and the management of a firm. Examples of these are: (a) at times managers will take on less (greater) risk than they would if they were the owners of the firm and (b) due to the separation of ownership and control managers are able to entrench themselves within firms and have little risk of being replaced. Provide a few examples of mechanisms that organizations could use to align the interests of both the owners of the firm and its managers.
- The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…29. Qualified accountants have superior knowledge of tax and financial reporting. What sort of power do they exert over other managers in an organisation? Coercive power Expert power Referent power Reward power In terms of Hofstede's cultural dimensions, the country of Frangium has a high power-distance (PD) score 2. Which of the following is an aspect of corporate governance that is likely to be seen in Frangium? OA Reduced promotion of risk management and internal controls Increased emphasis on basing rewards on annual performance Reduced emphasis on separating the board roles of chair and CEO Increased number of non-executive directors on the boardQualified accountants have superior knowledge of tax and financial reporting What sort of power do they exert over other managers in an organisation OA Coercive power Expert power Referent power Reward power The cross elasticity of demand between Product M and Product N is positive. What is the correct description of both Product M and Product N ? Complementary goods Veblen goods Giffen goods Substitute goods
- 1. Which of the following statements most appropriately describe how agency cost affect the firms choice structure? Explain. a. When firm owners borrow money they have an incentive to engage in excessive risk taking (that is investing in very risky projects). Since they are managing someone else money.b. When firm have very limited investment opportunities and little debt financing combine with wealth profit that provide them with free cash flow, their management team might squander the firms' earnings on questionable investments. 2. What is the primary weakness of using EBIT-EPS analysis as a financing tool. 3. Why might firms who's sale level change drastically overtime, choose to use debt only sparingly in their capital structure 4. What does the term independence hypothesis means as it applies to capital structure theory 5. Explain how industry norms might be used by the finance manager in the design of the company's financing mix note: if you can provide the source of the info,…Big Tractor, Inc.'s best salesperson is Misty Hammond. Hammond's largest sales have been to Farmer's Cooperative, a customer she brought to the company. Another salesperson, Bob Blanchette has been told in confidence by his cousin (an employee of Farmer's Cooperative) that Farmer's Cooperative is experiencing financial difficulties and may not be able to pay Big Tractor Inc. what is owed. Both Hammond and Blanchette are being considered for a promotion to a new sales manager position. What are the ethical considerations that Bob Blanchette faces? What alternatives do you think he has?9. James Jessmore is a manager at a local bank. James's management style is best described as entrepreneurial-he is risk neutral. Wynetta George is a customer service representative who reports to James. Wynetta is risk averse. In designing a compensation package for James and Wynetta, which type of compensation arrangement should be emphasized more? James Jessmore a. Performance-based b. Performance-based C. Straight salary d. Straight salary Wynetta George Performance-based Straight salary Performance-based Straight salary