1. The primary financial objective is usually taken to be the maximization of shareholder wealth.

Discuss:

1. Ways in which the shareholders of a company can encourage its manager to act in a way which is consistent with the objective of maximization of shareholder wealth.
2. What other objective may be important to a public limited company which are in-line with the primary objective of shareholder wealth maximization.

2. What is the purpose or benefit of published financial statements for companies and the ratio analysis?
3. Discuss Bonds/ Preference Shares and Ordinary Shares, and factors determinant in choosing them as the firms capital structure.
4. What are the short term and long term financing available for companies to generate funds for operating their business. Discuss the reason for acquiring this funds.

(4 to 5 pages to answer this question and point forms with compact facts)