Question 1 If it is lawful but awful then it is an issue of ethics. Why? Give three (5) examples in a business setting to back your explanations Question 2 (a) Explain each of the following risks: a. Agency risk b. Conflict of interest c. Compliance risk Question 2 (b) Discuss how each of the following corporate governance structures can be used to promote internal controls and manage each of the above risks in Question 3(a) in either a financial institution or any institution of your choice. Independent non-executive directors b. Remuneration committee c. Audit committee Question 3 The board of firm wanted to get value for money by employing the right number of workers. Thus it hired an economist to estimate the firm's production function. Based on the economist's report, the board now knows that the firm's production function is given by: 2. Capital is fixed at 9 unit. Suppose the firm can hire labor at a wage of GHS15 per hour and output can be sold at a price of GHS500 per unit. Determine the profit-maximizing levels of labor and output Question 4 You operate in a duopoly in which you and a rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each carn zero profits. If you each charge a high price, you each earn profits of $3. If you charge different prices, the one charging the higher price loses $5 and the one charging the lower price makes $5. i. Write above game in the normal form the ii. Find the Nash equilibrium for a one-shot version of this game. ii. Now suppose the game is infinitely repeated. If the interest rate is 5 percent, can you do better than you could in a one-shot play of the game? Explain. iv. Explain how "history" affects the ability of firms in this game to achieve an outcome superior to that of the one- shot version of the game. Page 1 of 2