Question
A. Ms. Mukwena wants to open a secondary school in Senanga. She knows that there is a lot she has yet to consider with regards
A. Ms. Mukwena wants to open a secondary school in Senanga. She knows that there is a lot she has yet to consider with regards to starting up a business. She needs to know her options with regards to ownership, inter-company relationships, decision making and business goals. Keeping her business goal in mind, briefly explain the following terms to Ms. Mukwena: i. Sole Proprietor vs Public Limited Company ii. Profit Maximisation vs Wealth Maximization iii. Investment, Financing and Dividend Decisions iv. Agent, Principal and the Agency Problem B. Ms. Mukwena has been told that if she wanted to borrow funds, she would have to borrow from households. Explain to Ms. Mukwena why households are considered the principal lender within an economy.
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