Answer each question in complete paragraphs; do not list or answer in phrases (points will be deducted for doing so). None of these questions can be adequately/comprehensively answered in just a paragraph, so be comprehensive, in depth in your answers, but be careful to not include irrelevant information. If you are using a legal term, be sure to define it and provide the requisite elements. Provide alternative theories and don't just pick the most relevant theory to discuss. Points will be deducted for answers that are not well justified, not sufficiently comprehensive. Use Writing Standard in text citations and references, as appropriate but please do not use direct quotes. Use only classroom notes/comment and assigned reading or watching materials as resources, which is all you need to complete the exam. Follow directions carefully. Answer all parts of each question.

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Eva owns Finest Enterprises, a clothing shop, as a sole proprietor. Eva wants to obtain additional capital to expand Finest, but she does not want to lose control of the business. Also, Eva has chosen not to take out any sort of loan to obtain additional capital to expand.

What is Eva's best option to obtain additional capital to expand and yet incur no further debt and retain control of the business? Why? Explore all possibilities and analyze why some may not be appropriate. For purposes of this question you should consider Eva forming a new business entity that may meet her business objectives.