How do you think accounting irregularities affect the pricing of corporate stock in general? From the investor’s viewpoint, how do you think the information used to price stocks changes in response to accounting irregularities?

Q: What do you think is the main issue of conflict between the stockholders and managers?

A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…

Q: Why do you suppose accounting regulations requirecompanies to report paper losses or gains from…

A: This Statement establishes standards of accounting for exchange-traded futures contracts (other than…

Q: Does fundamental or technical analysis provide better knowledge for investing in securities?

A: Fundamental analysis is the method of measuring the intrinsic value of a stock by using the…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The role of regulators in mitigating Earnings Management activities

A: Earnings management refers to the practices undertaken by corporate management to intentionally…

Q: When analyzing a company's financial report, what are the most likely indicators that a company is…

A: A tax is a financial charge imposed by government. It is a source of income for the governments to…

Q: Describe some of the motives and mistakes made by the investors?

A: Investors are driven by different motives when taking decision to make investment in specific…

Q: What's the connection between financial statements and stock markets?

A: Introduction: Financial reporting and stock markets Financial reports are documents that provide…

Q: Discuss the techniques used by investors and managers to analyze financial statements?

A:

Q: How does the activity of investors in the financial market affect the decisions of executives within…

A: The financial market is a platform where investors trade for stocks. Investors trading over the…

Q: Why are most decision makers particularly concerned about the amount of current liabilities reported…

A: A current liability is a debt that the company intends to pay off right away using resources that…

Q: What are some actions that stockholders can take to ensure that management’s and stockholders’…

A: Shareholders own the company but they don’t manage it. Hence, they elect Board of Directors…

Q: How would you relate the role of financial managers, role of financial markets and role of…

A: The financial managers are the managers of the company which controls the allocation of funds, plans…

Q: What is the role of regulators in the financial markets?

A: Financial markets are a place where individuals and firms come together to execute some trades. They…

Q: If a publicly traded company is trying to maximize its perceived value to decision makers external…

A: Assets are the resources of the organization which is useful for producing goods and services.…

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.