Explain why signaling is so important to management relations with investors.

Q: Discuss the implications of the efficient market hypothesis for financial managers and security…

A: An efficient market hypothesis is defined as the hypothesis, which used to state that the share…

Q: Explain when diversification is an effective business strategy.

A: Diversification, simply, means to increase profit by higher sales through a new variety of products…

Q: An investor who believes that markets are efficient should follow: A. An active management strategy…

A: the passive investment strategy is a strategy to maximize returns, the investor minimizes his…

Q: Explain the important implications which investors and corporate managers wishing to use the…

A: Investments are the money or funds invested by the investors in some financial instrument in the…

Q: What is the relationship among management, auditors, investors, and creditors that tends  to…

A: Preclude the “What would you like it to be?” Attitude. Making it impossible to deviate from the…

Q: What actions that shareholders can take to ensure that management’s and shareholders’ interests are…

A: Shareholders are individuals that own shares in the company and thus has some percentage in the…

Q: How does the activity of investors in financial markets affect the decision of executives within the…

A: Introduction:- The allocation of money to various sorts of short-term and long-term assets is…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: s of financial management and provide strategies used by financial managers to overcome/avoid these…

A: Step 1   Financial risk management is the process of dealing with and controlling potential and…

Q: Explain how the decisions you would make might differ if you were an external investor or a member…

A: Decision making is the process of making choices by gathering information. It helps in making…

Q: Transparency

A: Management and directors should act in a transparent manner in the affairs of the company. It is an…

Q: Define information risk and explain how the financial statement auditing process helps to reduce…

A: Information risk is the risk that the information disseminated by a company will be materially tend…

Q: Why it is important for organization to have  a corporate portfolio analysis?

A: Corporate Portfolio Analysis, is the study of some specific portfolio to assess its performance,…

Q: goal of financial management is to maximize the shareholders' value. What are the pros and cons o

A: Basic objective of financial management is to increase the value of shareholders and to increase the…

Q: What goals might be persued by managers instead of maximization of shareholders wealth

A: Goals of financial management should be so articulated as to help achieve the objective of wealth…

Q: Why might one expect managers to act in shareholders' interests? Give some reasons.

A: Managers would act in shareholders’ interests as a result of they need a duty to act in their…

Q: When is the financial information a faithful representation? Multiple Choice If it allows management…

A:

Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…

A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…

Q: What are governance mcechanisms that help align the incentives of stockhlers and managers  - help…

A: The interest of stockholders and managers are often not aligned. Stockholders are owners of a…

Q: A goal of financial management is to maximize the shareholders' value. What are the pros and cons of…

A:

Q: Which of the following is not a potential benefit of usingbudgets?a. Enhanced coordination of firm…

A: A business may expect benefits from preparing a formal budget in many ways, as follows: Enhanced…

Q: Consider why earnings management is considered important by many managers and management teams.…

A: Answer:-  Earnings management meaning:- Earnings management is the use of accounting practices to…

Q: Please explain why prudent financial management will maximize Shareholders’ wealth, in the following…

A: Financial management is a function in the business that is dealing with financial resources…

Q: Explain how a financial manager can, in practice, maximize the wealth of shareholders.

A: Answer

Q: Do firms need to consider the so-called corporate social responsibilities in making investment…

A: This is a primary responsibility of a Corporate house to returning to society.  Corporate social…

Q: How does the activity of investors effect the decisions of executives within the firm?

A: There is no direct connection between the activities of investor  in financial markets with the…

Q: Give an example of how the needs of a business and its financial management strategy may be taken…

A: The Answer

Q: What is the most important reason for an organization to use enterprise riskmanagement?

A: Accounting information systems (AIS) collect and process transaction data before distributing…

Q: ____________key decisions is a financial manager likely to make?

A: Financial manager has to take many decisions related to financial management of company.

Q: Why is there a need for a company to be transparent in informing its investors on what is happening…

A: Investors of the business are those people who invest money in the business by purchasing shares of…

Q: What are the important implications for financial managers when markets operate efficiently?

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…

Q: Should a firm’s managers help investors improve their estimates of the firm’s intrinsicvalue?…

A: Introduction: Intrinsic value is nothing but the stock’s approximate market worth, extracted from…

Q: Give an example of how the purpose and objectives of a firm influence how management designs its…

A: Here is the answer:

Q: Distinguish between the phrases 'investment selection' and 'financial decision-making' as they…

A: The Answer is

Q: Discuss the benefits of managing financial risks in a company?

A: Risk is the factor which arises from the uncertain future factors. It is always preferable to manage…

Q: A well-run company should align the management’s interest and with the owner’s interests. What are…

A: An organization with a good corporate governance has the interest of the management and the…

Q: activity of investor

A: A place where securities and derivatives are dealt with is known as a financial market (FM).

Q: How business firm face management challenges in covid-19 crisis?

A:

Q: What is market efficiency? Define. In addition, what are the important implications for financial…

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…