The Organizational Strategy Of Human Resources - 1287 Words

Human Resource Manager Mary Carnahan HA 302 – Management of Human Resources February 26, 2016 Introduction This is a research paper about the organizational strategy on human resource activities such as health care recruitment and selection of employees, employee appraisal or employee compensation. What are the three laws that HR managers must keep in mind when performing these tasks? What is the impact that these laws have on how an HR manager performs his or her duties? At the end of this research paper I will share with you a story of a HR manager who was asked not to follow one of these laws and what happened as a result. What is a HR Manager? I’ve always thought of an HR manager to be the person who keeps†¦show more content†¦Cultivate younger generations: Sending representatives to talk to middle schools and high schools can plant the seed for the ways in which one can achieve a successful healthcare career. Internships and Returnships: A great way to gain public attention for your organization or to embrace the university system is to include either paid or unpaid (college-credit) internships at your organization. Teaching Hospitals: Through the idea of teaching, your hospital or healthcare firm can offer in-house job training to students with the cooperation or teamwork of local universities by offering college credits to employees who can complete certain tasks. Staffing Agencies: By partnering with a staffing agency that operates on a national level, you can be in constant communication with bodies of people who know of the best-in-class physicians and where they are located. (Ha nna 2014). Selection of employees: The HR manager has to make sure they interview and hire to right employees for any type of business, large or small. â€Å"The human resources department must choose which selection strategies it will adopt to screen candidates and find the best person for each job. The human resources director can choose from among standard selection strategies or combine elements of several to create one that works best for her individual business† (Redman, 2016). Employee appraisal: Of course within anShow MoreRelatedHuman Resource Management And Organizational Strategy752 Words   |  4 Pagesfavoring intelligence over experience in his employees. In modern society, human capital is the most dynamic resources for a company. How to attract excellent human resource and utilize their ability to reach organizational goal is something managers should think about. Strategic human resource management could explain the relationship between human resource manage ment and organizational strategy. The idea of strategic human resource (management) is a relatively new concept. 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SHRM is gaining widespreadRead MoreLink Between Strategic Management and Leadership1199 Words   |  5 PagesPROGRAMME TITLE: Human Resource UNIT NAME: Human Resource ASSIGNMENT NAME: To achieve goals of the organization there must be vertical link between business strategy and HR strategies and horizontal links among HR strategies Student Name : Phone Myint Ko Issue Date : August 12, 2012 Submission Date : August 19, 2012 Abstract The human resource of an organization offered the potential synergy for sustained competitive advantage, when properly deployed, maintainedRead MoreThe Value Of Good Management1664 Words   |  7 Pagesorganization s centre is people. The essence of good management is the collection of various kinds of resources; make full use of the function of management, to get the best return on the best investment, in order to achieve business goals for the company success. For instance, Jack Ma, CEO of Alibaba, his company is one of the biggest internet company in China, because he successfully assemble the resource of small company in a competitive environment. In addition, he put the customers and staff intoRead MoreThe Key to Hrm Is the Link Between Organizational Activities, Employees and Business Strategy. Culture Is Often Overlooked Within Understanding How Employees Behave.1032 Words   |  5 PagesThe Key to HRM is the link between organizational activities, employees and business st rategy. Culture is often overlooked within understanding how employees behave. Stone (2010, p. 4) defines human resource management (HRM) to have a focus on managing people within employer and employee relationship. There is a specific link between the productive use of people achieving the organization’s strategic business objectives of which involve a certain time frame and the satisfaction of individual

Working With Teams - 739 Words

Working with teams Working in teams is a common approach that many areas such as schools, workplaces are taking in certain tasks, responsibilities or even special projects. While it can be quite challenging to work in teams towards a common goal due to different personality types that people have it is very advantageous for both individuals and the organizations involved (Rasing, 2013).The paper will highlight on some of the positive experiences that exist for working in teams.it will at what people learn from working in tams.it will further look at how teams are used in workplaces and other areas like education. Finally it will look at the advantages of team work and how teamwork skills might benefit a specific field. Experiences of working with teams I have worked with teams under very many occasions in school and also in my current workplace. I have had both positive and negative experiences when working with teams.in terms of positive experiences I can say that there was a lot of cooperation from other team members and hence any task given to us that required to be executed by the team was effectively executed. Through teamwork there was the creation of better communication from team members and hence positive relations were built (Rasing, 2013).On several occasions especially in school, I was helped by other team members particularly on my weak areas and hence I was able to improve on my weak areas. On the other hand there are also some negative experiences that IShow MoreRelatedWorking in Teams: A Study1683 Words   |  7 PagesWorking in teams: Final project Task 1 Almost everyone has been on a team at some point in his or her existence, either a sports team as a child or a team at work or in school. The language of teamwork suggests that being on a team is innately different than being a member of a group. 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Finance Final Exam Winter 2007 Solutions free essay sample

In our example there was a capital loss of $10 given that the selling price of the bond ($1,040) was less than the purchase price of the bond ($1,050). Rate of return = ($70 $10)/$1,050 = 5. 71%. 6. (Q. 2 in B) A bond with 10 years until maturity, an 8 percent coupon rate, and an 8 percent original yield to maturity increased in price to $1,107. 83 yesterday. What appears to have happened to interest rates? Coupons are paid annually. A)Rates increased by 2. 00 percent. B)Rates decreased by 2. 00 percent. C)Rates increased by 0. 72 percent. D)Rates decreased by 1. 50 percent. Answer D $1,107. 83 = $80[pic] i = 6. %, yield to maturity was 8. 0% prior to the price change. Therefore the rates have decreased by 1. 5%. 7. (Q. 3 in B) Which of the following statements is correct about a stock currently selling for $50 per share that has a 16 percent expected return and a 10 percent expected capital appreciation? A)Its expected dividend exceeds the actual dividend. B)Its expected return wil l exceed the actual return. C)It is expected to pay $3 in dividends for next year. D)It is expected to pay $8 in dividends for next year. Answer C Expected return = expected dividend yield + expected capital appreciation 16% = expected dividend yield + 10% % = expected dividend yield $50 share price ? 6% = $3 expected dividend payment 8. (Q. 4 in B) An investor receives a 15 percent total return by purchasing a stock for $40 and selling it after one year with a 10 percent capital gain. How much was received in dividend income during the year? A)$2. 00 B)$2. 20 C)$4. 00 D)$6. 00 Answer A [pic] 15% = [pic] Dividend = $2. 9. (Q. 13 in B) Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,000. Both vehicles would be expected to last four more years. If your opportunity cost is 8 percent, what would be the maximum annual maintenance expense on the newer vehicle to still justify its purchase? A)$1,250 B)$1,585 C)$2,000 D)$2,415 Answer B $8,000 = Annuity [pic] = Annuity [3. 3121] = $2,415. 39 When combined with the annuitized cost of the vehicle, any annual expense over $1,584. 61 would place the total annual expense of the new vehicle over $4,000. 10. (Q. 14 in B) The profitability index for a project costing $40,000 and returning $15,000 annually for four years at an opportunity cost of capital of 12 percent is: A)0. 139 B)0. 320 C)0. 500 D)0. 61 Answer A PV = $15,000 [pic] = $15,000 [3. 0373] = $45,560 and NPV = $45,560 $40,000 = $5,560. Profitability index = $5,560 / $40,000 = 0. 139. 11. (Q. 15 in B) What is the minimum number of years that an investment costing $500,000 must return $65,000 per year at a discount rate of 13 percent in order to be an acceptable investment? A)8. 69 years. B)14. 00 years. C)27. 51 years. D)An in finite number of years. Answer D NPV = ($65,000 / 0. 13) $500,000 = 0. 12. (Q. 16 in B) You can continue to use your less efficient machine at a cost of $8,000 annually for the next five years. Alternatively, you can purchase a more efficient machine for $12,000 plus $5,000 annual maintenance for the next five years. At a cost of capital of 15 percent, you should: A)Buy the new machine and save $388 in equivalent annual costs. B)Buy the new machine and save $600 in equivalent annual costs. C)Keep the old machine and save $388 in equivalent annual costs. D)Keep the old machine and save $580 in equivalent annual costs. Answer D The PV of total cost of the more efficient machine is $28,760. 78, which translates into an EAC of $8,579. 79, which is $579. 9 higher than the annual cost associated with the less efficient machine. 13. (Q. 17 in B) What is the approximate IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for six years? A)19. 9 percent B)30. 0 percent C)32. 3 percent D)80. 0 percent Answer A Use the following information to answer Questions 14 – 17 (Questions 9 – 12 in Type B). Jensen Industries is considering purchasing a new Numerically Controlled Drilling Press. The press costs $100,000, and belongs to a 15% CCA rate asset class (declining balance method) and the half-year rule applies. The press is estimated to have cash flow savings of $34,000 per year for 6 years and will require an immediate increase in Net Working Capital of $5,000, which will be recovered when the machine is sold at the end of year 6. Initially assume there is zero salvage value. The discount rate is 10% and the tax rate is 40%. 14. (Q. 9 in B) What is Jensen’s CCA in Year 1 and Year 2? A) $7,500; $12,750 B) $7,500; $13,875 C) $15,000; $12,750 D) $15,000; $13,875 Answer B CCA in year 1 = $100,000 x ? x 0. 15 = $7,500. CCA in Year 2 = $(100,000-7,500) x 0. 15 = $13,875. 5. (Q. 10 in B) What is the present value of Jensen’s CCA tax shield? A) $5,367 B) $11,667 C) $19,419 D) $22,909 Answer D [pic] 16. (Q. 11 in B) Should Jensen accept the project? A) Yes, because the NPV is positive, and it exceeds $10,000. B) Yes, because the NPV is positive, although it is less than $10,000. C) No, because the NPV is negative, and it is between 0 and -$10,000. D) No, because the NPV is negative, a nd it is between -$10,000 and -$100,000. Answer B NPV=-$105,000 + $34,000(1-0. 40)(PVIFA6yr,10%) + $5,000 (PVIF 6yr,10%) + $22,909 = $9,578. 69. Year |0 |1 |2 |3 |4 |5 |6 | |Savings | |34,000 |34,000 |34,000 |34,000 |34,000 |34,000 | |Tax @ 40% |   |13,600 |13,600 |13,600 |13,600 |13,600 |13,600 | |After-tax savings | |20,400 |20,400 |20,400 |20,400 |20,400 |20,400 | |Capital Investment |-100,000 | | | | | | | |Change in NWC |-5,000 |   |   |   |   |   |5,000 | |CFs Excluding CCATS |-105,000 |20,400 |20,400 |20,400 |20,400 |20,400 |25,400 | |Discounted CFs |-105,000 |18,545 |16,860 |15,327 |13,933 |12,667 |14,338 | |PV of CCATS |22,909 |   |   |   |   | | | NPV |$ 9,578. 69 |gt;0 | | | | | | 17. (Q. 12 in B) By how much will the NPV increase if Jensen is able to obtain a $10,000 salvage value at the end of Year 6? A) $1,824 B) $4,290 C) $5,645 D) $6,000 Answer B NPV increase = PV of salvage value – PV of lost CCATS due to salvage value [pic] 18. (Q. 23 in B) What happens to the NPV of a one-year project if fixed costs are increased from $400 to $600, the firm is profitable, has a 15 percent tax rate and employs a 12 percent cost of capital? A)NPV decreases by $200. 00. B)NPV decreases by $170. 00. C)NPV decreases by $151. 79. D)NPV decreases by $116. 07. Answer C |Fixed costs |+$200 | |Profit before tax |-$200 | |Taxes | -$30 | |change in cash flow= -$200 + $30 = -$170, which discounts to -$151. 79. 19. (Q. 24 in B) Fixed costs including depreciation have increased at Leverage, Inc. from $4 million to $6 million in an effort to reduce variable costs. What must the new variable-cost percentage be to leave accounting break-even at $20 million? A)60 percent B)65 percent C)70 percent D)75 percent Answer   Ã‚  C Old: [pic] = $20 million variable costs = 80%. New: [pic] = $20 million x = 30%. Therefore, variable-cost percentage must reduce from 80 percent to 70 percent to leave the accounting break-even revenues unaffected. 20. (Q. 25 in B) Approximately how much was paid to invest in a project that has an NPV break-even level of sales of $5 million, annual cash flows determined by: 0. 1 ? sales – $300,000, a six-year life, and an 8 percent discount rate? A)$416,667 B)$924,576 C)$1,016,678 D)$2,311,450 Answer B PV (cash flows) = investment [pic] (0. 1 x $5 million – $300,000) 4. 6229 ($200,000) = $924,576 21. (Q. 26 in B) What percentage change in sales occurs if profits increase by 3 percent when the firms degree of operating leverage is 4. 5? A)0. 33 percent B)0. 67 percent C)1. 50 percent D)3. 33 percent Answer B DOL = [pic] = [pic] % change in sales = 0. 67%. 22. (Q. 18 in B) If an assets expected return is 10 percent, which represents a 20 percent return in a good economy and a 5 percent loss in a bad economy, what is the probability of a good economy? A)60. 00 percent B)40. 00 percent C)33. 33 percent D)18. 33 percent Answer A p: probability of a good economy; 1-p: probability of a bad economy. It follows that: 10% = 20% ? p + (-5%) ? (1- p) ( p = 60%. 23. (Q. 19 in B) What is the approximate standard deviation of returns for a one- year project that is equally likely to return 100 percent as it is to provide a 100 percent loss? A)0 percent B)50 percent C)71 percent D)100 percent Answer D Mean = (0. 5 ? 100%) + (0. 5 ? (–100%)) = 50% – 50% = 0%. Variance = [pic]= [pic] = 10,000 Standard deviation = [pic]= 100%. 24. (Q. 20 in B) What is the approximate variance of returns (in percentages squared) if over the past three years an investment returned 8. 0 percent, -12. 0 percent, and 15. 0 percent? A)31 B)131 C)182 D)961 Answer B Mean = [pic]= 3. 67%. Variance = [pic] = [pic] = 130. 89 percentages squared. 25. (Q. 21 in B) What is the standard deviation of a five-stock portfolio that produced portfolio returns of -4%, 2% and 5% with equal probability? A) 2. 90% B) 3. 24% C) 3. 74% D) 4. 58% Answer C The equal probability is 1/3. The portfolio expected return = (1/3)(-4% + 2% + 5%) = 1%. The portfolio variance = (1/3)[(-4%-1%)2 + (2%-1%)2 + (5%-1%)2] = 14 percentages squared = 0. 0014. Taking the square root of the portfolio variance, we find that the portfolio standard deviation is 3. 74%. 26. (Q. 22 in B) What is the expected rate of return on a portfolio that will decline in value by 13 percent in a recession, will increase by 16 percent in normal times, and will increase by 23 percent during boom times if each scenario has equal likelihood? A)8. 67 percent B)13. 00 percent C)13. 43 percent D)17. 33 percent Answer A Expected return = [pic]= [pic]= 8. 7%. 27. (Q. 31 in B) If a stock consistently goes up (down) by 1. 6 percent when the market portfolio goes down (up) by 1. 2 percent then the stock’s beta: A)equals 0. 75. B)equals 1. 33. C)equals -0. 75. D)equals -1. 33. Answer D It is obvious that the stock’s beta should be negative. Also the stock is an aggressive stock. The beta of the stock is – 1. 6% / 1. 2% = -1. 33. 28. (Q. 32 in B) Which of the following statements is correct when Treasury bills yield 7. 5 percent and the market risk premium is 9. 5 percent? A)The SP 500 would be expected to yield about 8. 50 percent. B)The SP 500 would be expected to yield about 9. 50 percent. C)The SP 500 would be expected to yield about 12. 68 percent. D)The SP 500 would be expected to yield about 17. 00 percent. Answer D The market portfolio (SP 500) would yield 7. 5% + 9. 5% = 17%. 29. (Q. 27 in B) When Treasury bills yield 7 percent and the expected return on the market is 16 percent, then the risk premium on a stock is equal to: A)9 percent. B)16 percent. C)9 percent times the stocks beta. D)8 percent plus the risk-free rate. Answer C According to the CAPM, the risk premium on a stock = the market risk premium ? ( = (16% 7%) ? ( = 9% ? (. 30. (Q. 28 in B) An investor was expecting an 18 percent return on her portfolio with beta of 1. 5 before the market risk premium increased from 8 percent to 10 percent. Based on this change, what return will now be expected on the portfolio? A)20. 0 percent B)20. 5 percent C)22. 5 percent D)26. 0 percent Answer B Old: 18% = rf + 1. 25(8%) = rf + 10. 0% 8. 0% = rf. New: Expected return = 8. 0% + 1. 25(10%) = 8. 0% + 12. 5% = 20. 5% . 31. (Q. 29 in B) What happens to the expected return on an asset if the asset beta decreases from 1. 5 to 1. 2, the risk-free rate increases from 4 percent to 5 percent, and the market expected return decreases from 9 percent to 7 percent? A)It increases from 7. 4 percent to 11. 5 percent. B)It increases from 13. 4 percent to 17. percent. C)It decreases from 11. 5 percent to 7. 4 percent. D)It decreases from 17. 5 percent to 13. 4 percent. Answer C Before the change: rj = 4% + 1. 5 (9% 4%) = 11. 5%. After the change: rj = 5% +1. 2 (7% 5%) = 7. 4%. 32. (Q. 30 in B) A project will generate $750,000 of cash flows annually for four years. The initial outlay is $2 million. The expected return on Treasury bills is 6 percent and the market risk premium is 8 percent. What is the highest project beta that will justify acceptance of the project? A)0. 00 B)1. 00 C)1. 56 D)2. 31 Answer C $2 million = $750,000 ? (PVIFA4 yr, IRR) IRR = 18. 45%. This suggests a risk premium of 12. 5 percent on the project, which corresponds to a beta of 1. 56. 33. (Q. 37 in B) If a firm is 42% debt-financed and the value of equity equals $47 million, which of the following is correct about firm value and the value of debt? There are only debt and equity in the firm’s capital structure. Firm value Value of debt A) $81 million $34 million B) $47 million $81 million C) $42 million$20 million D) $81 million$42 million Answer A Firm Value = $47M / (1-0. 42) = $81M. Debt = $(81M – 47M) = $34M. Use the following information to answer Questions 34 – 37 (Questions 33-36 in Type B). Eastman Chemical has 38 million shares of common stock outstanding. The book value per share is $42 but the stock sells for $58. It also has 700,000, 9 percent semiannual coupon bonds outstanding, par value $1,000 each. The bonds have 10 years to maturity and sell for 86 percent of par. Eastman’s common stock is twice as risky as the market portfolio. The firm has 14 million shares of 5 percent preferred stock outstanding which currently sell for $63 per share. The face value per preferred share is $100. The T-bills yield 5. 25%, and the market risk premium is assumed to be 4. 15%. Eastman is in the 35% corporate income tax bracket. 34. (Q. 33 in B) Eastman’s after-tax cost of debt is: A) 4. 53% B) 6. 45% C) 6. 96% D) 7. 40% Answer D On your financial calculator: FV=1000, PV=-860, N=20, PMT=45; I=? 5. 69% ( YTM=5. 69 ? 2 =11. 38%. After-tax cost of debt = 11. 38% ? (1-35%) = 7. 40%. 35. (Q. 34 in B) Eastman’s cost of equity is: A) 9. 40% B) 13. 55% C) 14. 65% D) 24. 05% Answer B By the CAPM: requity = 5. 25% + 2 ? 4. 15% = 13. 55%. 36. (Q. 35 in B) Eastman’s cost of preferred stock is: A) 4. 85% B) 5. 00% C) 6. 22% D) 7. 94% Answer D The annual dividend paid on per preferred share is $100 ? 5% = $5. So rpreferred = $5 / $63 = 7. 94%. 37. (Q. 36 in B) What is the discount rate that Eastman should use to evaluate a project which is very similar to the firm’s existing business? A) 8. 56% B) 9. 25% C) 11. 22% D) 13. 55% Answer C    |Equity |Preferred |Debt |Value | |Price |58 |63 |860 | | |Shares (million) |38 |14 |0. 7 | | |Market Value ($ million) |2,204 |882 |602 |3,688 | |Weights |0. 60 |0. 24 |0. 16 | | |Costs |13. 55% |7. 94% |7. 40% | | |WACC |11. 22% | | | | Conceptual questions (2 points each) 38. (Q. 3 in B) When a manager does not accept a positive-NPV project, shareholders face an opportunity cost in the amount of the: A)projects initial cost. B)projects NPV. C)projects discounted cash flows. D)soft capital rationing budget. Answer B 39. (Q. 44 in B) When mutually exclusive projects have different lives, the project which should be selected will have the: A)highest IRR. B)longest life. C)highest NPV, discounted at the opportunity cost of capital. D)lowest equivalent annual cost. Answer D 40. (Q. 45 in B) When should the net working capital investments be included in the estimation of cash flows? A) Never. B) At the beginning of the project. C) At the end of a project. D) Any time during the life of a project. Answer D 41. (Q. 46 in B) Capital budgeting investments are evaluated with the assumption that projects are: A) 100 percent -debt financed. B) 100 percent -equity financed. C) 50 percent -equity and 50 percent -debt financed. D) 25 percent -equity and 75 percent -debt financed. Answer B 42. (Q. 38 in B) If sensitivity analysis indicates none of the individual variables will cause a negative NPV under pessimistic conditions, then the: A)project is assured to be successful. B)projects discount rate should be reduced. C)economic forecasts are possibly overly optimistic. D)interaction of the variables should be considered. Answer D 43. (Q. 9 in B) The opportunity to alter production technology gives managers: A)the flexibility to adapt to changing situations. B)increased cash flow from operations. C)the opportunity to expand production. D)the ability to expand product lines. Answer A 44. (Q. 40 in B) Which of the following concerns is likely to b e most important to portfolio investors seeking diversification? A)Total volatility of each individual securities. B)Standard deviation of individual securities. C)Correlation of returns between securities. D)Achieving the risk-free rate of return. Answer C 45. (Q. 41 in B) The risk premium that is offered on common stock is equal to the: A)expected return on the stock. B)real rate of return on the stock. C)excess of expected return over a risk-free return. D)expected return on the SP 500 index. Answer C 46. (Q. 42 in B) The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because individual stocks: A)offer higher returns. B)have more systematic risk. C)do not have unique risk. D)have no diversification of risk. Answer D 47. (Q. 49 in B) Stock returns can be explained by the stocks _________ and the stocks __________. A)beta; unique risk. B)beta; market risk. C)unique risk; firm-specific risk. D)aggressive risk; defensive risk. Answer A 48. (Q. 0 in B) What will happen to a stock that offers a lower risk premium than predicted by the CAPM? A)Its beta will increase. B)Its beta will decrease. C)Its price will decrease until yield is increased. D)Its price will increase until yield is reduced. Answer C 49. (Q. 47 in B) Generally speaking, the optimal capital mix that minimizes the weighte d average cost of capital also: A) maximizes EPS. B) maximizes share price. C) minimizes the required rate of return on equity. D) minimizes bankruptcy costs. Answer B 50. (Q. 48 in B) Firms have various sources of financing. Which one of the following does not incur flotation costs? A) Long-term debt. B) Preferred stock. C) Common stock. D) Retained earnings. Answer D

Review of Quantitative Finance and Accounting

Question: Discuss about the Review of Quantitative Finance and Accounting. Answer: Introduction Positive accounting research is one of the most debatable topics, and this article intends to focus on the human attributes that is directly associated with the utilization of hypothesis and statistical methodologies. In relation to the implementation of the positive accounting research, this article sheds light on the theory of knowledge, and the obstacles of the statistical methodologies like imperfect reproduction in order to establish effective confidence due to low-interest levels in the numerical specifications, model development on an informal basis, etc. On a whole, this article aims to highlight the significant points that result in insufficiencies, thereby, in turn, offering several substitutes that can assist in creating an effective positive accounting research. Hence, the main aspect of the article is to provide a strong balance to the research so that a strong policy can be formulated. No concept is devoid of limitations, the best way to boost the concept is to enhance the knowledge with newer ideologies. This paper begins with a proper assessment of human beings wherein their various traits in the distinct environment is taken into account. In addition, several other prospects that play a key role in affecting the reason making ability is also taken into consideration. Moreover, it can also be witnessed that the acts and practices are altogether affected by an infinite number of factors. It does not operate on its own rather influenced by various factors that have a major role to play. With the help of this article, the difference of human behavior in two different scenarios can be observed. Besides, this is the key aspect of research in the positive accounting (Davila Foster, 2007). It can be witnessed that an enlightened perspective affects a human being, and their reaction is entirely based on the scenario. Nevertheless, such behavior is observable in more than seventy percent of the situation. The reason why there is a drastic decline in human beings interaction is due to a technicality in accounting and its operations. Besides, there is a system, which controls everything, and hence, the reliance is primarily based on the system, thereby resulting in generating difficulties in determining the reasonable human objectives. The objectives are guided by several systems and subsystem. Nevertheless, this is because several perspectives influence such human behavior (Davila Foster, 2007). In other words, the behavior of humans is influenced by several prospects, thereby making it problematic to be adjudged. Therefore, the presumption taken into account plays a key role in disqualifying the positive accounting research in order to make an effective contribution towards the society. Moreover, the outcomes together with anticipations are also relevant. Therefore, this article intends to develop the research efficiency by offering various suggestions regarding positive research. The suggestions are provided for the benefits of the theory and ensure that the research is successful. Besides, several illustrations are considered by considering different models of research. Both the hypothesis and statistical methodologies are required to assess different scenarios, and the procedure of auditors reaction that is associated with the presumption of reasonableness (Dunmore, 2007). Hence, if the procedure is correct and reasonable then it is easy to conduct the research and derive at a course of an action. Further, the outcome of hypothesis aligns with the samples opted, and therefore, ultimate targets become unattainable. Ultimately, this article sheds light on the undetermined relationship by considering two different variables, but require more instead. Therefore, the key need is to assess the theories that play with each other, as opposed to evaluating a methodology for the hypothesis. It is, therefore, significant to evaluate distinct theories or methodologies so that it can highlight the present practice. This article intends to highlight a developed model and the methods must be effective enough to make the testing accurate. Accurate testing is the need of the hour because such a testing helps in making effective decisions. Models that lack the concept of effectiveness are unable to ensure a better place. This, in turn, leads to a better practice (Markarian, 2007). Furthermore, such testing must be free from biases and errors in order to make the model more effective. Connections of a more dependable nature must also be framed with proxies so that it can result in a determination of measurable strategies. Therefore, this clearly depicts that research paper plays a key role in emphasizing not only upon the hypothesis concepts but also upon an effective situation for the anticipation of parameters (Dunmore, 2007). Thus, development of innovative methodologies is relevant to ensure an enhanced research operation. Besides, this can result in a more enhanced outcome if substantial replica s that can align with the efficiency of the measurement play a key role in leading towards the analysis of the limitations or restrictions of the research. The evaluation of positive accounting research is the major question of research, and whether any strategies are prevalent, that can enable the performance of an auditor or accountant. Yet, it is vulnerable to several attackers. This means the entire concept is not free to operate rather various factors plays a predominant role. The hypothesis is examined by taking samples of audit fees that are liable to be charged, against the size of firm and complexity of audit procedure. This is a quantitative research that takes into account procedures of changeability of audit fees, thereby illustrating several policies, and use of methodologies of regression (Dahmash et. al, 2009). This model is prevalent to track the type I error, but it is notable that both testing and hypothesis cannot be perfect. The main aim of the hypothesis is to illustrate that nil hypothesis is imperfect as the outcomes are associated with the sample. The sample determines the real nature of the hypothesis. Therefore , it is clear that hypothesis testing plays a key role in offering an inappropriate proof in the scenario of the hypothesis of substitute nature. On a whole, the value of hypothesis is irrelevant in relation to positive accounting research (Kealey, 2007). Therefore, after taking into due consideration the research and other materials, it can be stated that this article primarily intends to focus on positive accounting research, and the literature review assists in finding whether such research can procure the prime objectives and goals. In addition, this research also relies on several models and factors (Antle et. al, 2006). Overall, the main aim of the article is to shed light on the concept of positive accounting research and ensure a practice that will be highly effective in the scenario. Theoretical framework There are various regulations in an auditing and accounting practice that are called accounting standards, or regulatory and taxation requirements, and compliance of these is significant to establish a constant framework of operations. Therefore, since these adherences to various rules and regulations are crucial, it facilitates in establishing a stagnant framework of operations but it must be noted that no relevant materials are disregarded in this process (Ashton et. al, 2004). However, auditors fail to adhere to such requirements, and these are established to interpret the causes for such differences. Several factors play a role in ascertaining these variations in anticipated action, like human traits that offer the reasonableness and independence of imagination of every performing individual. Moreover, biases and errors generate as such independence marks create a pattern and operate with preconceptions. Nevertheless, such trends can play a key role in altering the designed course of action (Tinker, 1982). For this article, such mentioned behaviors are a significant material and these can be investigated in order to prevent it from influencing the framework. A sample size is taken into account while working with a hypothesis, with a presumption that it highlights the population as a whole. Therefore, all possibilities must be carefully considered and misrepresentation can be framed after considering one item as a sample from every type, in order to make this measure to operate effectively. This can assist in avoiding checking off every kind, thereby depicting an aggregate crosscheck betwixt various scenarios. Nonetheless, utilization of one method cannot assure an appropriate outcome because every statistical measure is oppressed with its own restrictions and the qualitative investigation is not conducted. Furthermore, a single scenario can be taken into due consideration through a hypothesis, in contrast to an audit that can have more (Ittner et. al, 2003). Therefore, although being simple, an audit process can have many variables, that are very significant. Thus, since hypothesis takes into due consideration only a single variable, a point of concern arises, thereby creating a situation of making the research distorted in nature. Importance and limitations With the assistance of this article, various relevant points of discussion arise because of several flaws in the current system. Therefore, such research is crucial to establish a path for enhancements in the system. The research will enable the system to have a proper balance and leads to a strong practice. Moreover, as per studies, it has been shown that human behavior is generally reasonable in nature, and it attempts to enhance the advantages of a scenario (Hay et. al, 2006). Besides, this article also has its disadvantages. Firstly, it primarily concentrates on a vital part of the thesis, and it could offer better suggestions together with illustrations to enhance the efficiency of the research. It means the research can be optimized through various ways. Furthermore, this article primarily takes the present theories to be efficiently true in nature and implements such theories (Hogget et. al, 2012). However, in reality, such theories have developed over due passage of time, and have not been examined since then. Hence, the part of the examination is missing and does not provide adequate back up (Choi et. al, 2009). This, in turn, lessens the importance of the concept. Therefore, such enhancements are a clear proof that developments are in fact still incurring in this operation. However, such advancements are very crucial in relation to such theories because it can play a key role in restricting these limitations, and it cannot be done if the level of st udy and research is not enhanced. Various statistical measures can play a key role in representing distinct outcomes and since, accounting is a prime subject with innumerable limitations and variables, the errors of measurement must be given due consideration. It must be provided adequate emphasis so that a better stand could be taken. Furthermore, considering an effective representation of samples is equally crucial because it must shed light on a virtuous picture as much as possible of the complete population (Fogarty Markarian, 2007). However, making a judgment of an entire population through a sample can have its own disadvantages and restrictions, and that must be taken due care of prior to evaluating the required outcomes. On a whole, this is one of the prime disadvantages that must be given due consideration as the sample may fail to depict the real nature of the population, thereby failing to offer an effective piece of information. If the information is ineffective in nature it will destroy the effectivenes s of the result. Conclusion With the help of this article, it can be clearly understood that the intensity of the present research of accounting is insufficient in nature, and has failed to procure the same to operate it. Therefore, this generates an immediate requirement to undertake a more systematic and strong approach that is also incorporated with methodological measures. Moreover, analytical models and unguarded models are the key way towards progress with more rigorous examination and re-examination that can be attained by replication, thereby playing a key role in offering several positive or effective outcomes for the accounting research. The curbs and other limitations of this field can be used to enhance its effectiveness and efficiency. Furthermore, the different opportunities that are generated through this research can be utilized in order establish a more rigorous and theoretically appropriate framework (Humphrey, 2008). Moreover, since new and innovative methodologies have been developing with the due passage of time, these can play a key role in enhancing the validity and importance of such research, thereby granting it the potential to align freely to fresh scenarios. On a whole, this methodology of positive accounting research must have to proceed with the due passage of time. References Antle, R., Gordon, E., Narayanamoorthy, G., Zhou, L 2006, The joint de-termination of audit fees, non-audit fees, and abnormal accruals, Review of Quantitative Finance Accounting vol. 27, no. 3, pp. 235-266 Ashton, D., Dunmore, P., Tippett, M., 2004, Double entry bookkeeping and the distributional properties of a financial ratios, Journal of Business Finance and Accounting vol. 31, no. 6, pp. 583-606. Choi, J.H., Kim, J.B., Liu, X., Simunic, D. A., 2009, Cross-listing audit fee premiums: Theory and evidence, The Accounting Review vol. 84, no. 5, pp. 1429- 1463. Dahmash, F. N., Durand, R. B.,Watson, J., 2009, The value relevance and re- liability of reported goodwill and identifiable intangible assets, The British Accounting Review vol. 41, no. 2, pp. 120- 137. Davila, A Foster, G., 2007, Management control systems in early-stage startup companies, The Accounting Review vol. 82, no. 4, pp. 907- 937. Dunmore, P.V 2009, Half a Defense of Positive Accounting Research, Massey University, Wellington, New Zealand Fogarty, T. J., Markarian, G 2007, An empirical assessment of the rise and fall of accounting as an academic discipline, Issues in Accounting Education vol. 22, no. 2, pp. 137161 Francis, J. R., 2006, Are auditors compromised by nonaudit services? Assessing the evidence, Contemporary Accounting Research vol. 23, no. 3, pp. 747- 760. Hay, D. C., Knechel, W. R., Wong, N., 2006, Audit fees: A meta-analysis of the effect of supply and demand attributes, Contemporary Accounting Research vol. 23, no.2, pp. 141- 191. Hogget, J., Edwards, L., Medlin, C Tiling, M 2012, Financial accounting, 8th edition, John Wiley Humphrey, C., 2008, Auditing research: A review across the disciplinary Divide, Accounting, Auditing Accountability Journal vol. 21, no. 2, pp. 170- 203. Ittner, C. D., Larcker, D. F., Meyer, M. W., 2003, Subjectivity and the weighting of performance measures: Evidence from a balanced scorecard, The Accounting Review vol.78, no. 3, pp. 725-758. Kealey, B. T., Lee, H. Y., Stein, M. T., 2007, The association between audit- tenure and audit fees paid to successor auditors: Evidence from Arthur Andersen, Auditing vol.26, no. 2, pp. 95-116. Tinker, T, B. Merino, Neimark M 1982, The Normative Origins of Positive Theories: Ideology and Accounting Thought, Accounting, Organizations and Society vol. 2, pp. 167200.