Question 3 - Risk management and rewards [20 marks] 1. Garden Express a new client has approached you to give them some advice as to the risks that may be involved in setting up their business. They are wanting to sell organic vegetable seedlings to both wholesale and retail customers. They have asked you to prepare a risk profile for them to consider before they proceed with setting up the business. Required: Identify the types and sources of risks and provide examples of two (2) risks to Garden Express for each risk that may relate to their business. [8 marks] 2. Garden Express is considering remunerating prospective employees with a suitable bonus structure that links to employees achieving their performance targets. They are hoping that this incentive would be a good way to entice skilled employees to come and work for their business. What are some issues that Garden Express may face if they performance manage their employees in this way? Please identify and provide at least 2 issues the business may face. [6 marks] 3. The owners of Garden Express were recently at a business function and the Agency Theory was discussed. Garden Express are very interested in the different types of agency costs that can arise in business. They have asked you to provide them with three agency costs that may apply to their business as well as two (2) examples relating to each agency cost that are relevant to their business. [6 marks]