The Main Purpose of the Corporations Act Is To

question 60

Multiple Choice

The main purpose of the Corporations Act is to:

• A) develop and promulgate approved accounting standards.
• B) establish appropriate corporate governance mechanisms to promote appropriate decision making by participants and managerial accountability to shareholders.
• C) give legislative backing to the Australian Securities Exchange's Listing Rules.
• D) ensure that auditors conducting financial statement audits are registered.

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Definitions:

Rate of Return

The percentage of profit or loss on an investment over a specified period.

Required Rate

Often used in reference to the minimum acceptable return on investment or the minimum discount rate used in net present value calculations.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations.