1. What are the three fundamental decisions the financial management team is concerned with, and how do they affect the companys balance sheet?

2. What are the two basic sources of funds for all businesses?

3. What is capital structure, and why is it important to a company?

4. What are some of the working capital management decisions that a financial manager faces?

5. What are the three forms of business organisation discussed in this chapter?

6. What are the advantages and disadvantages of becoming a sole trader?

7. Whatisa partnership, and what is the biggest disadvantage of this business organisation? How can it be avoided?

8. Explain what is meant by shareholders limited liability.

9. Is profit maximisation is the best goal for a company? Explain why or why not.

10. What is the appropriate goal of financial managers? Can managers decisions affect this goal in any way? If so, how?

11. What ethical conflict does insider trading present?