As far as the claim against Safety Ltd for provision of Sue’s medical bills is considered this more legitimate one because it is the responsibility of Safety Ltd to pay for the bills if some worker of the company gets injured while working within the company. Sue has damaged her back while trying to retrieve some stock in the store. The company has undergone an insurance contract with Safety Ltd which makes Safety Ltd obliged to pay any sort of bills in case of worker’s injury while on job. The contract of insurance that was made by Techno with Safety Ltd was of worth 5,000,000 which is a big amount. The terms and conditions of the insurance contract required the company to pay for the damages in case of fire or any other incident that takes place on site. Liquidator has rejected this claim of Sue to get the medical bills paid to her too. In this case too Sue will have to rely on the decision made by the court and in order to get the decision in her favour she will have to present supporting evidence that can ensure the success of claim.
Being an accountant it is my responsibility to advise my clients honestly about the investment alternatives available. The final decision to accept or reject an alternative lies with the client himself as he may reject or accept based upon his own perceptions and interests. Each form of investment has its own risks and returns associated. Nature and behaviour of client determines which alternative will be preferred by him and why. As an accountant I have a responsibility to highlight both the negatives and positives associated with each alternative so that client may have independence in choosing among those alternatives. Lee family is planning to invest in a new venture which is going to be financed by a mixture of owner capital and borrowed capital. The ratio that is maintained by the family is that of 50-50 i.e. 2 million is going to be invested out of Lee’s own wealth and the remaining 2 million will be invested by taking loan from some financial institution. It indicates that the investment is going to be of worth 4 million which is a huge investment. To provide proper financial advice to Lee’s family each alternative is going to be discussed separately keeping in view the pros and cons of each investment alternative.