We have studied pivotal foundational concepts as It relates to the Principles of Finance. The following questions are related to these concepts. Please answer them completely using the examples discussed thus far throughout the course. Outside research is highly recommended as real life applications of these concepts will assist in providing complete answers, and a well written paper.
- You have a friend who tells you that ethics are completely unimportant In business since a number of laws have been set up for us to know the rules of the game. Explain, with examples of unethical behavior noted In the past, why or why not this statement Is correct.
- The U.S. GAAP is based on a set of live principles that form the basis of accounting standards. Identify and explain these fundamental principles, and describe the overall meaning and purpose of each one.
- Suppose that you Just attended a lecture on Time Value of Money. On your way home, you stopped in to get a cup of coffee. One of your classmates, who missed the lecture, joined you for coffee and asked you to explain to them the key concepts of Time Value of Money and how you could use it to solve some of life's financial problems. What would you tell them?
- Differentiate the characteristics of common and preferred stocks.