QUESTION 3 (25 MARKS)

a) Elaborate the importance of financial management to all managers. (5 marks)

b) Explain three (3) advantages of the organisational forms a company might have as it evolves from a start-up to a major corporation. (6 marks)

c) Justify your position on what managers' primary goal should be. (Hint: your response should centre on these three dimensions below.)

i). Do businesses have any societal responsibilities?

ii) Is stock price maximisation beneficial or detrimental to society?

iii) Should businesses act ethically? (11 marks)

d) Elaborate the three aspects of cash flows affect the value of any investment. (3 marks)