QUESTION 2 (25 MARKS)

(a) Jaymee decided to operate a small shop selling local delicacies. His brother James is interested to partner with him. Advise them on the advantages and disadvantages of

i) sole proprietorship

ii) partnership

Then justify whether Jaymee should start as a sole proprietor or partner with James. (15 marks)

(b) Elaborate on the goal that constantly motivate the actions of a financial manager. (10 marks)

Remarks

this question from the course Corporate Finance, provide the answer as per the marks given.