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[20 Marks] Question 1 a. Explain the purpose of capital in the enterprise. b. Distinguish between real capital, financial capital and risk capital. C. Discuss

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[20 Marks] Question 1 a. Explain the purpose of capital in the enterprise. b. Distinguish between real capital, financial capital and risk capital. C. Discuss the interrelationship of firm capital and firm risk. Question 2 a. Evaluate the objectives of minimising the cost of risk. b. Explain the components of the cost of risk. (3 Marks) (9 Marks) (8 Marks) [15 Marks] (3 Marks) (12 Marks) Question 3

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