Identify and explain two duty of care considerations the fsp

Assignment Help Financial Accounting
Reference no: EM132903231

Mr and Mrs X applied for a low doc loan from a financial service provider (FSP) to refinance an existing loan and to obtain additional finance of $200,000 to assist them to purchase another property. Mr and Mrs X disclosed in their application: partnership income of $400,000, rental income of $40,000 and a parenting allowance of $20,000. The FSP approved their loan based on their income as disclosed in the application and their declaration that the loan was within their ability and capacity to service. The FSP did not make any independent enquiries to verify the application information.

Problem 1: Identify and explain 2 duty of care considerations the FSP should have displayed in assessing the applicants' capacity.

Reference no: EM132903231

Questions Cloud

Prepare cost of production : During the second month, you plan to produce 110 products but expect sales in the month to be 115 products. Prepare cost of production
About the expectancy theory : Briefly share why as a manager, you should care about the Expectancy Theory?
What dollar amount would initially be recorded : The owners of a new venture have decided to organize as a corporation. What dollar amount would initially be recorded in the common stock account
Disruptive innovator with respect to blockbuster : Describe how Netflix was a "disruptive innovator" with respect to Blockbuster? What were the sources of Netflix's risk of failure at video downloading/streaming
Identify and explain two duty of care considerations the fsp : Mr and Mrs X applied for a low doc loan. Identify and explain 2 duty of care considerations the FSP should have displayed in assessing the applicants' capacity.
Discuss using environmental management : You have been appointed as the new environmental manager for Microsoft. discuss using environmental management as a competitive advantage.
Explain three key benefits pds provide to financial sector : Explain 3 key benefits PDS's provide to financial sector consumers. (Describe the key features of: organisation's financial products and services).
Netflix was disruptive innovator with respect to blockbuster : Describe how Netflix was a "disruptive innovator" with respect to Blockbuster?
How much will janet have at the end of twenty-five years : Janet plans on saving $2,000 a year and expects to earn7.5 percent annually. How much will Janet have at the end of twenty-five years if she earns

Reviews

Write a Review

Financial Accounting Questions & Answers

  Examine apples statement of cash flows

Examine Apples statement of cash flows - actions that Apple could take in order to maximize the use of its cash flows. Provide a rationale for your response

  The following information is available for pension plan of

the following information is available for pension plan of kiley company for the year 2010.actual and expected return

  What is the firm value of operations for yon sun corporation

FCF is expected to grow at a constant rate of 4% in the future. If the weighted average cost of capital is 15%, what is the firm value of operations, in million

  How much will be in a high-yield account at national bank

How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you deposit $5000 now and $7000 fi ve years from now? The account earns interest at a rate of 8% per year, compounded quarterly (draw the cash flow diagram)

  What is the cost of debt capital and common stock

What is the weighted average cost of capital assuming a tax rate of 30 percent? What is the cost of debt capital? Common stock? Preferred stock?

  What amount should lem report as depreciation

Lem uses straight-line depreciation. In its 2010 income statement, what amount should Lem report as depreciation for this machinery

  Review the annual report for starbucks

Review the annual report for Starbucks. Within the annual report, find the disclosures, management’s discussion and analysis, and any other related disclosures. Discuss your findings. Do you feel there was sufficient information in the disclosures re..

  Interest expense creates magnification of earnings

Interest expense creates magnification of earnings through financial leverage because:

  What types of tax law guidance are published by the irs

What role does the Internal Revenue Service play in interpreting, and providing guidance on, the tax law? What types of tax law guidance are published by the IRS?

  What rate of return is built into the annuity

20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

  When accounting for property and plant and equipment cost

When accounting for property, plant and equipment the cost of the item is only recognised as an asset if the replacement value of the asset can be ascertained

  Calculate the spending and the production-volume variances

Jo Publishing Company specialises in printing specialty textbooks for a small but profitable university market. Due to the high set-up costs for each batch printed, Jo Publishing holds the book requests until demand for a book is approximately 500. W..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd