FINANCE REINFORCING QUESTIONS
QUESTION ONE
Outline FOUR main objectives, which conflict and at the same time overlap – explain these overlap and conflicts.
QUESTION TWO
Discuss the main problems sole traders’ encounter in a bid to raise finance on Kenya’s financial markets.
QUESTION THREE
Within a business finance context, discuss the problems that might exist in the relationships (sometimes referred to as agency relationships) between:
a) Shareholders and managers, and
b) Shareholders and creditors.
QUESTION FOUR
Two neighboring countries have chosen to organize their electricity supply industries in different ways. In country A, electricity supplies are provided by a nationalised industry. On the other hand in country B electricity supplies are provided by a number of private sector companies.
Required
a) Explain how the objectives of the nationalised industry in country A might differ from those of the private sector companies in country B.
b) Briefly discuss whether investment planning and appraisal techniques are likely to differ in he nationalised industry and private sector companies.