Question 6 a. Discuss the advantages of a proprietorship over a partnership. What are the advantages of a corporation over (i) a proprietorship. (ii) a partnership? (5 marks) b. What does value maximisation refer to? Is it the same with profit maximisation? Explain your answer. Distinguish between value maximisation and profit maximisation. [5 marks] c. In pursuing the goal of a firm, why is corporate governance important? Provide ONE (1) example to illustrate your argument. (5 marks) d. By giving TWO (2) examples, briefly explain the effect of globalisation on financial management in this era. (5 marks) e. The Capital Asset Pricing Model (CAPM) is a widely used concept in finance. The Model is expressed graphically by the Security Market Line (SML). Within the context of investment, explain how CAPM can be useful to investors. (5 marks) [TOTAL: 25 MARKS] QUESTION PAPER ENDS HERE