BM013-3.

5-3 Corporate Finance

Individual Assignment

Page 1 of 4

Learning Outcomes
Questions
1. Critically analyze and evaluate alternative sources of Assignment
long-term capital and the relationship to investing
decisions.
2. Critically understand the complexities involved in Assignment
assessing and measuring business risk and the return on
investment.
3. Apply a range of models in the process of organizational Assignment
valuation.

Marks are awarded based on the following guidelines:

Grade
80%-100%

Description of performance level

There were mature and interesting points based on your research and reading.
Each point supported with valid explanation. Shows understanding of subject

60% 79%

matter. Adequate references given. No grammatical errors or spelling mistakes.

There were sufficient points raised with valid explanations provided. There is
adequate understanding of subject matter.

40% 59%

Minor grammatical errors and

spelling mistakes.
No clear understanding of research subject. Insufficient points given and
explanations are unclear or not helpful in clarifying points. Not enough reference

Below 40%

given. Major grammatical and spelling mistakes.

You did not show understanding of the subject matter. Points are off-topic and
do not tie back to research. No understanding of theories and concepts taught.
Not enough reference given. Numerous grammatical and spelling mistakes.

Assignment Assessment Criteria

The criteria below detail the areas, which will be taken

into account when the assignment is marked.

1.

To address the subject satisfactorily, a typed format is mandatory. Pass assignments are
expected to be legible, tidy, well organized and written in clear understandable English.

APU Level 3

Asia Pacific University of Technology and Innovation

201504

BM013-3.5-3 Corporate Finance

2.

Individual Assignment

Page 2 of 4

High grades [70%, 75%, +80%] need to demonstrate sustained coherent analytical ability.
A systematic approach to analysis and evaluation is required for grades 60% to 85% - for

3.

Grades at the higher end of the scale, integration and synthesis is a requirement. The
quality of the arguments used to develop and support prescriptions/recommendations are,
in our view, the essential test of integration.

4.

Evidence of reading and some understanding of models and concepts are needed to
achieve a pass grade [50%]. Integration of theory and practice is expected for any grade
above 65%.

5.

You are expected to clearly state any assumptions you make, and support statements and
theories by referencing to appropriate sources. [This is essential for higher grades but
does not necessarily prejudice a pass mark [50%] if it is missing].

6.

As well as submitting a hard copy of your assignment you are also required to submit the
electronic version. Unless both, hard copy and electronic versions are provided it will not
be counted as submitted.

Attention will be paid to:

There must be proper referencing and citation. Harvard Referencing is a must. Citation must
include, apart from the normal details, the page number from where the issue for discussion has
been taken.

Question 1
Corporate ownership structure varies around the world. Historically, individuals have owned the
majority of shares in public corporations in the United States and some other countries. In
Germany however, banks or other large financial institutions own most of the stock in public
APU Level 3

Asia Pacific University of Technology and Innovation

201504

BM013-3.5-3 Corporate Finance

Individual Assignment

Page 3 of 4

companies. In Japan the cross-shareholding patterns have been the trend. In some countries e.g.
India, Pakistan etc. ownership of some companies resides within a family.
You are required to evaluate agency issues in relation to different ownership structures as
mentioned above. Also explain generally the role a typical ownership structure plays to mitigate
agency problems.
[50 marks]
Question 2
Corporate Failure: Tragedy or Expected?
Conventional proposals to reform corporate governance based on the rational model of
decision making may be insufficient in preventing future corporate debacles. Typically
underestimated are the pressures from conflicts of interest and bias on reputational
intermediaries. Judgements and choices made by auditors during professional
engagements may not strictly adhere to the rational model of decision making. This is of
significance with regard to the gatekeeper function of auditors and relevant legislation
(Marnet, 2007)
Marnet, O (2007) History repeats itself: The failure of rational choice models in
corporate governance, Journal of Critical Perspective on Accounting 18, pp 191-210.

Corporate failure had been discussed always. The initiation of regulatory and supervision being
the central factor to ensure empowerment play a key role in curbing the failure among corporate
firms which could result huge losses to the shareholders.

APU Level 3

Asia Pacific University of Technology and Innovation

201504

BM013-3.5-3 Corporate Finance

Individual Assignment

Page 4 of 4

You are required to analyze the factors contributing to corporate failure globally (a special
reference to Malaysia would give additional marks]. Do you think it cause by tragedy or
otherwise?
[50 marks]
[Total marks = 100]

APU Level 3

Asia Pacific University of Technology and Innovation

201504