Common characteristics of institutional investors include all of the following EXCEPT? A) Relatively large scale B) Short-to-intermediate term investment horizon C) Regulatory issues/frameworks D) Principal-agent issues
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- Which statement below best describes an investment center? a. The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. b. The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. c. The authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. d. The authority to provide specialized support to other units within the organization. e. The responsibility for developing markets for and selling of the output of the organization.Explain the meaning of the undernoted measures that may be used for divisional performance measurement and investment decision-making. Discuss the advantages and problems associated with: Return of capital employedA significant influence investment is one that: A. allows the investor to exercise significant influence over only the operating policies of the Associate. B. allows the investor to exercise significant influence over only the financing policies of the Associate. C. allows the investor to exercise significant influence over the strategic, operating, and financing policies of the Associate. D. allows the investor to exercise significant influence over the strategic and operating policies of the Associate.
- After initial recognition of exploration and evaluation assets, they are measured in the statement of financial position using -Cost model -Either cost model or revaluation model, based on the accounting policy -adopted by the enterprise. -Fair value model -Revaluation model According to PAS 28, Which of the following will not fall under the situation of “existence of significant influence by an investor in the financial and operating policy decisions of the investee but not control of these decisions? -Material intercompany transactions -Power to govern the financial and operating policy decisions of an enterprise so as to obtain benefits from its activities. -Technological dependencies -Participation in policy making process Which of the following is classified under PAS 16 -Property Sold under a Finance Lease Agreement -Investment Property -Property Leased under a Finance Lease Agreement -Machinery Held under a low value Lease AgreementA.Briefly explain the concept of the efficient market hypothesis (EMH) and each of its three forms and briefly discuss the degree to which existing empirical evidence supports each of the three forms of the EMH.b. Briefly discuss the implications of the efficient market hypothesis for investment policy as it applies to technical analysisThe third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A. payback method B. accounting rate of return C. internal rate of return D. inventory turnover
- Which of the following accurately refelects how this event affects the company’s finanacial statements? Which option is the best, A, B, C, DWhich of the followings is the LEAST considered when developing financial strategiesa.Risk of industry-comparable employee turnoverb. Relationships with business partnersc. Current and forecasted financial positiond. Need for long-term financing of potential projects and current operationsWhat is the goal of FASB and IASB in the creation of the conceptual framework? To develop standards that are internally consistent. To develop standards that lead to financial reporting that provides clear consistent information to capital providers. To develop standards that are internationally converged. All of these choices are correct.
- Which of the following types of efficiency describe investment markets? I Operationally efficient. II Informationally efficient. III Allocationally efficient. IV Strategically efficient. A) I, II and III only B) I, II and IV only C) I, III and IV only D) II, III and IV onlyDefine and explain the agency problem in terms of differences in ability to diversify risk by finance and human capital. Why does it arise? What are the mechanisms available to ameliorate the agency problem?Please explain if the below-mentioned statement is true or false and why, in as much detail as possible. It would be best to answer it with ''It depends on...''. On what does it depend? When is it true, when is it false?Statement: ''The investment in a subsidiary (SME) can be justified when measured against MNC investment standards, as long CSR standards are met too''.