Why Finance Assignments are Critical?
If the world of finance can be visualized at large, then it can be experienced that explanation of any particular event can be interpreted based on several theoretical foundations, which are individually objective in nature, but collectively subjective. Almost all of the theoretical foundations in the domain of finance are based on some specific assumptions, relaxation of which may lead towards falsification of that theory, based on the parametric setting of the scenario. Choosing a particular theory based on a particular situation is not only a tough job, but also there are lot of subjective factors attached to the situation, which are directly associated with the assumptions of the theory. If one considers the aspect of forecasting, then consideration of economic parameters are subject to the academic preference and psychological setting of the academician, as for example, exchange rate deterioration possibly will be considered good for academicians inclined towards service industries, but bad for those inclined towards manufacturing and importing industries.
If the cases of financial performances of organizations are considered, then subjectivity can be seen in those cases as well. Conservational, pessimistic, and optimistic views in turn result in divergences in the analysis of the same performance indicators of a particular firm, for a given period of study. Having more debt in financial structure is preferable for a conservative researcher, as it can provide the firm with more leverage, but it can be opposed by an optimistic researcher, who considers aggressive approach towards diversifying the ownership of that firm. These are some of the examples of hidden subjectivities in the finance assignments. Therefore, it is suggested that the assumptions should be clarified at the very beginning of the assignment, so that the reader of the assignment can be assured of the stand of the writer, and hence can judge the findings and comments accordingly. For more information about subjectivity and objectivity of finance assignments, kindly browse through the pages of www.assignmentindia.com.