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Answer to Question i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement v

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Charles Sturt University

   

Accounting Systems and Processes (ACC566)

   

Added on  2020-03-02

About This Document

ACC566 - In this assignment, we will get to know about Accounting & Finance. In this assignment, we discussed some important questions related to Accounting & Finance. In the first question, we discussed The concept of maximization of shareholders' wealth that focuses on enhancing the overall value of business instead of focusing on short-term benefits or returns. In the second question, we discussed Risk aversing investors when they are faced with two investment decisions, they would prefer investments with lower risks.

Answer to Question i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement v

   

Charles Sturt University

   

Accounting Systems and Processes (ACC566)

   Added on 2020-03-02

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Running head: ACCOUNTING & FINANCEAccounting & FinanceName of the UniversityName of the studentAuthors note
Answer to Question i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement v_1
1ACCOUNTING & FINANCETable of ContentsAnswer to Question 2:................................................................................................................2Requirement 1:.......................................................................................................................2Requirement 2:.......................................................................................................................3Answer to Question 3:................................................................................................................4Requirement i:........................................................................................................................4Requirement ii:.......................................................................................................................4Requirement iii:......................................................................................................................5Requirement iv:......................................................................................................................6Requirement v:.......................................................................................................................6Requirement v:.......................................................................................................................6Requirement vi:......................................................................................................................7Requirement vii:.....................................................................................................................7Requirement viii:....................................................................................................................7Reference:..................................................................................................................................8
Answer to Question i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement v_2
2ACCOUNTING & FINANCEAnswer to Question 2:Requirement 1: The concept of maximization of shareholders wealth is that it focuses on enhancingthe overall value of business instead of focusing on short-terms benefits or returns. On otherhand, concept of maximization of profit is essentially a short-term approach that does notlead to increased value of business. The main objective of maximizing the wealth ofshareholders is that it results in efficiently allocating capital and maximizing the return oncapital. The concept is related with increasing the shareholders wealth by increasing thebusiness value (Bae et al., 2014). Maximizing the wealth of shareholders is one of the universally accepted objectivesof any organization. The concept of maximizing the wealth of shareholders came into beingafter the concept of profit maximization. Value of shareholders would improve with theincrease in price of shares that is regarded as the net worth business function. The drawbacksof maximization of profit model are obviated by the employment of model of wealthmaximization. Capital investments made by organization should be able to generate returnthat is more than the required rates of return such investments made such that this would leadto maximizing the wealth of shareholders. However, an increase in profit of organizationindirectly increases the wealth of shareholders. This is so because this would generate higherdividend payment to shareholders that would involve long-term pay offs to customers. Maximization of wealth of shareholders is the responsibility of management byallocating resources in way that would help in generating highest returns and at the same timemitigating the risks. A detailed and in depth analysis if cash flow associated with investmentsis required to be conducted by management.
Answer to Question i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 6 Requirement i: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement vii: 7 Requirement v_3

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