Question 1 a. Discuss the factors that are likely to influence the desired level of cash of a company (5 marks) b. Outline the advantages and disadvantages of using short term debt, as opposed to long term debt, in the financing of working capital (10 marks) c. Why cash flows rather than profits are most desirable in financial management? (5 marks) d. Explain the term agency relationships and discuss the conflicts that might exist in the relationship between i) Shareholder and managers ii) Shareholders and creditors What steps may be taken to overcome these conflicts? (10 marks)