Question 1

i)

Describe the three basic forms of business organization and discuss their advantages

and disadvantages.

ii)

Define what is meant by an agency relationship and clearly explain what an agency

problem is. Use a real life example to demonstrate your understand

ing.

iii)

Name three investment rules. Detail the mechanics for each of these rules and

compare their advantages and disadvantages. Finally, tell us which rule you

personally prefer and why.