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Professor, please help me with these
Which of the FOUR of the following ethical safeguards are typically put in place by professional accountancy bodies?
A Setting of professional standards
B Creation of internal business complaint procedures
C Professional monitoring and disciplinary procedures
D Ethics training for all professional accountants
E Creation of ethical cultures in organisations
F Ensuring openness and transparency between organisations and their stakeholders
G Creation of corporate governance requirementsAnswer is A,C,D,G. I did ACDH. I am confused with G and H.
(2) According to Porter’s five forces model, which TWO of the following indicate there is a low threat of new entrants to the market?
A Low capital requirements
B Patents exist on major product lines
C Access to distribution channels is not restricted
D Large numbers of suppliers of raw materials
E Low switching costs for customers
F Existing firms in the market are large
G Rapidly expanding marketAnswer is B and F. I did A, C. Can you please help me with this question entirely.
(3) A Ltd needs to make a rapid decision about the launch of a new product and is considering whether to set up a committee to investigate this. Which of the following statements is correct with regards to A’s decision?
A Committees tend to be slow at making decisions, meaning it may be inappropriate for A in this situation.
B Committees ensure that all the individuals involved are held responsible for the decision that the committee makes.
C Committee members usually attend committee meetings full time, meaning that their normal work-load may suffer.Answer is A. What makes B wrong?
(4) If a government increased its expenditure and reduced levels of taxation the effect would be to reduce/stimulate/increase* demand in the economy and to reduce/stimulate/increase* the size of the Public Sector Net Cash Requirement (PSNCR).
Which words correctly complete this statement?
*delete as appropriateAnswer is Stimulate and Increase. I did Increase and Increase.
What is difference between two?Please use a new posting and heading for each question.
Q1 There is no H. G is wrong because accountancy bodies do not establish governance requirements.
Q2. Low threat of new entrants means there are barriers to entry. Low capital requirements means it is relatively easy to set up. Open distribution channels makes entry easy too.
A patent could stop entry if you are not allowed to use it. Large competitors have lots of resources ans economies of scale and they could crush new entrants.
Q3 B is a characteristics of committees, but has nothing to do with the rapid decision mentioned in the question
Q4 The first one is a bit nit-picking. There is not much difference between increase and stimulate. I suppose it could be argued that stimulating the economy means people will increase their expenditure, hence e in crease demand, but I wouldn’t worry about that too much,.
The second one you are, of course correct.
Professor, sorry I missed this. This is last option of Question 1.
(H) Creation of corporate codes of ethics.
I did this.Thank you professor for all the remaining answers. 🙂
Last thing, just see whether (H) is correct or wrong.
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