Assessment 1 - Written Responses 1. Research and explain how you would develop and apply your knowledge of economic principles to improve business performance. Your answers should include how microeconomics influences financial products and services we buy. 2. What does the term capital adequacy mean? Describe the role of the Australian Prudential Regulation Authority in Australia. How does this organisation affect the regulations that apply to Capital Adequacy? Include in your explanation how changes to the Basel accord in 2013 affected the Prudential Standard APS 222. 3. Whilst working in accounting, explain how you will: a. Evaluate your own work in the context of relevant economic principles b. Identify ways to improve your performance through the development of your understanding of how economics will apply to own decision making processes. 4. What are financial modelling techniques and how are these applied to economic data?

When required to undertake research to create a financial model, how would you evaluate your research data? Explain the techniques and tools you would use to ensure your financial model

is correct? 5. Describe how you would determine and apply the organisational value in relation to capital structure. (Further information regarding Share Capital and the Balance Sheet can be found at page 533 of Financial Accounting 6th Edition) 6. Choose two economic theories from the list below and explain the impact these have on industry, the government and the individual. If appropriate, include in your explanation how you will integrate contemporary economic principles into your everyday work practices. Keynesian economics Post-Keynesian economics Value theory Supply-side economics Monetarism.