Question: a. Explain the difference between risk and uncertainty and give an example of each. Briefly discuss the ways by which risk and uncertainty can be

a. Explain the difference between risk and uncertainty and give an example of each. Briefly discuss the ways by which risk and uncertainty can be reduced.

b. Clearly explain the difference between shareholders and bondholders in a corporation and discuss the advantages and disadvantages of holding each of these classes of security.

c. Explain why an agency relationship exists in the corporate form of organisation and discuss ways of dealing with problems that arise from this relationship.

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