Answer:
a global standard for the good governance of oil, gas and mineral resources.
Explanation:
During the final or phaseout stage of the project life-cycle, scope is the dominant goal of many project managers.
Based on the scenario provided above, the banker's action is still considered to be legal despite of the fact that he provides personal details to the banker though it is also considered as highly unethical because using this information is his way of selling insurance policies in which isn't the best thing to do as a banker's job.
Answer:
a. emphasizes accounting income
Explanation:
Average rate of return is calculated using annual returns, for the period for which the investment is made.
The formula to calculate so =
Where average return during the period = total of return during the entire life of the investment divided into number of years, or tenure of investment.
Average investment = (Opening investment + Closing investment)/2.
Therefore it does not consider the accounting income, it takes into consideration, it considers total return from each particular investment.
Thus emphasizing on accounting income is not an advantage of average rate of return method.
Answer:
Porsche hedges its foreign exposure to prevent it from the volatile currency market.
Hedging makes sense from the shareholder's perspective.
Hedging makes sense from the management perspective
The potential difference in interest between management and shareholders on the hedging strategy exists.
Explanation:
- Porsche hedges their foreign exposure to prevent it from the volatile currency market. The foreign operations of Porsche from the overseas implies that it has to convert its currencies to various denominations to US Dollar. so it faces the translation, economic and transaction exposure due to the fluctuating currency markets and exchange rates. In such a case, the Porsche has to hedge foreign exposure by using currency swaps or future contracts to ensure the loss from currency exchange is minimized.
- Yes, it makes sense from the shareholder's perspective to hedge because it protects the earnings of the company since the shareholders want their earnings to be maximized.
- Yes, hedging makes sense from the management perspective. The management are the agents of the shareholders and thus try to pursue hedge strategy on behalf of the shareholders to ensure the earnings are protected and losses due to currency exposure are minimized.
- There exists differences in interest between management and shareholders on the hedging strategy. The potential difference in interest between the shareholders and the management is due to the risk level.