Please help

Two actuaries have decided to go into business. They intend to borrow heavily in order to pay a substantial deposit on the rental of premises, to invest in computers and other equipment and to meet routine running costs for the first few months of operations. The actuaries do not wish to accept personal risk for the liabilities of the business and have decided to form a limited company. Explain the extent to which the actuaries will succeed in avoiding personal liability by incorporating their business as a limited company. [5] In many countries companies are not permitted to treat depreciation as an expense for tax purposes. Instead, they are allowed to deduct a capital allowance, which is effectively a depreciation charge that is calculated in a very rigid and prescriptive manner. Explain why tax rules deal with depreciation in this manmer. [5] Describe the risks associated with investing in debenture stocks. [5] Explain why the directors of a company might wish to have a steady and consistent dividend policy. [5] A company has several divisions, each of which operates on a geographical basis and in the same line of business. Divisional managers can submit proposals for capital investment projects for consideration by senior management at head office. An analysis of proposals received in the past three years indicates that some divisional managers submit far more proposals than others and that some divisional managers are consistently more optimistic than others in their proposals. Explain why such behaviour might occur and why it creates problems for companies. [5]