If the directors of a company make a decision, which later on
proves not to be...
If the directors of a company make a decision, which later on
proves not to be a good decision and causes the company to lose
money, will the directors be liable for failure to exercise their
duty of care and diligence?
If the directors of a company make a decision, which later on
proves not to be a good decision and causes the company to lose
money, will the directors be liable for failure to exercise their
duty of care and diligence?
If the goal of your decision making is to make the optimum
decision or make the best choice, you should utilize
the bounded rationality model of decision making.
the intuitive decision-making model.
the creative decision-making model.
the rational decision making model.
If it proves possible to make abnormal profits based on
information regarding past stock prices, then the market:
Select one:
a. is weak-form efficient.
b. is not weak-form efficient.
c. is semi-strong-form efficient.
d. is strong-form efficient
Which of the following costs is not relevant in a make or buy
decision?
Multiple Choice
Direct Materials
Varible manufacturing overhead
Avoidable fixed costs
Unavoidable fixed costs
Directors, executives, and accountants all need to make
strategic decisions for their company. Discuss three reasons why
directors, executives, and accountants should understand
‘Teleology’ and ‘Deontology’ in their decision making.
Can managers influence a company’s ethical culture by
altering the organisation’s code of conduct? Discuss.
Agricultural Household Model
a. Assume there is a farming household which has to make a
decision about how much food to produce. The marginal cost of
producing an extra unit of food, where Q is the total quantity of
food produced, is MC = 2*Q. If the price of food, PFood, = $12, how
much will the farm produce? What is the farm’s profit?
b. The price of other stuff is POther = $6. Assume the household
has consumption preferences...
The role of the Board of Directors and officers is one of
decision making. What protection is provided the Board of Directors
and officers when they make a decision. What if they make the
incorrect decisions are they subject to civil penalties? Are they
subject to any penalties?
Consider the make-or-buy decision. Give three examples of
situations which a business should make rather than buy. Give three
examples of situations in which a business should buy, rather than
make.