Question 3 a) How does using banks and microlenders as sources of financing differ from seeking funds by going public? [10 marks] b) Compare and contrast venture capitalists with angel investors. [10 marks] Question 4 a) Explain the essential purpose of a business and how value chain can support that purpose. [10 marks]

Question 3 a) How does using banks and microlenders as sources of financing differ from seeking funds by going public? [10 marks] b) Compare and contrast venture capitalists with angel investors. [10 marks] Question 4 a) Explain the essential purpose of a business and how value chain can support that purpose. [10 marks] Question 5 The classic theory of comparative advantage suggests that each country should a) specialize in those areas where it can produce more efficiently than other countries b) produce all goods and services it requires for domestic consumption c) attempt to maintain a trade deficit by importing more than what it exports d) attempt to maintain a trade surplus by exporting more than what it imports Question 6 An employee finds consistent discrepancies on invoices being sent to a large customer and is concerned about unethical behavior on the part of the billing manager. How can an organization provide support to the ethical decision-making process of the employee? a) Write a code of ethics to guide all employees in decision making b) Train all employees in ethical practices c) Give employees a safe and confidential way to share concerns with management d) Allow information to flow freely to managers and employees, but not to external stakeholders Question 7 Which of the following is a key difference between a corporation and a sole proprietorship? a) Compared to establishing a proprietorship, establishing a corporation is easier. b) Unlike a corporation, a proprietorship is subject to double taxation. c) Regulatory requirements are less severe for corporations than sole proprietorships. d) Unlike a sole proprietorship, a corporation has limited financial liability Question 8 One of the general characteristics of a small business is that it typically sells fewer products a) to a larger customer base b) to fewer market segments c) to foreign companies d) at lower costs to government agencies