The ASX Guidelines for Company Directors and the Code of Ethics

question 30

Multiple Choice

The ASX guidelines for company directors and the code of ethics for accountants both require the following:

• A) consideration of the public interest.
• B) minimum technical and professional standards.
• C) need for transparency and accountability.
• D) all of the above.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in alignment with the goal of shareholder wealth maximization.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, often used to assess risk in investment portfolios.

Investment's Cash Flows

The cash that is generated or expended over the course of an investment's life.

Real Options

An approach in finance where choices are treated as derivative securities that managers can use to maximise returns while deferring investment decisions.