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- You’re getting ready to expand yourwoodworking hobby into a full-time business ofbuilding custom kitchen cabinets. To create top-qualitycabinets, you know you’ll need to upgrade from theconsumer-grade machinery you have now toindustrial-grade equipment. The new equipment willbe much more expensive but, if properly cared for,should last for decades, and you hope to be inbusiness for at least 20 years. If the overall costs ofleasing this equipment or borrowing money to buy itare roughly the same, which financing method wouldyou choose? Why?Based on your reading of Commentary on Earnings Management by Schipper (1989) answer all the following question: •Explain how earnings management from an informational perspective differs from the true income perspective.In setting up a pay structure, what legal requirements must an organization meet? Which of these do you think would be most challenging for a small start-up business?
- 2. What fundamental ethical principles for accountants are most applicable and is there an apparent conflict between them?What other positions can you think of that are related to financial management? Write 3 and explain your answer.To be successful, what traitsand skills does an employee inthe finance industry need?